Weekly Trading Prep: Oct. 17 – 21, 2016

Lots of tier 1 reports on tap this week! Are you ready to trade the majors? Here are the weekly chart levels as well as possible catalysts that you need to watch!

Weekly Inflection Points to Watch

EUR/USD

GBP/USD

USD/JPY

USD/CHF

Open Price 1.0970 1.2155 104.34 0.9903
Last Week’s High 1.1245 1.2947 104.65 0.9911
Last Week’s Low 1.0971 1.2089 102.81 0.9772
Top Weekly ATR 1.1053 1.2351 105.55 0.9978
Bottom Weekly ATR 1.0888 1.1959 103.13 0.9829

1-Hour Charts of the Majors

Purple Line: weekly open prices
Blue Line: weekly highs and lows
Red Line: top and bottom weekly ATRs
Blue MA: 100 SMA
Red MA: 200 SMA

EUR/USD 1-hour Forex Chart

EUR/USD 1-hour Forex Chart

GBP/USD 1-hour Forex Chart

GBP/USD 1-hour Forex Chart

USD/JPY 1-hour Forex Chart

USD/JPY 1-hour Forex Chart

USD/CHF 1-hour Forex Chart

USD/CHF 1-hour Forex Chart

3 Potential Catalysts:

1. Tier 1 U.K. reports – As if the whole May-vs-Parliament drama isn’t enough for pound bulls and bears, the U.K. will also print a couple of tier 1 reports in the next couple of days. Specifically, we’ll see the employment data from August and inflation and retail sales numbers from September. Analysts are expecting the weak pound to give the last two reports a boost, but keep your eyes peeled in case we see data misses that hint of more post-Brexit weaknesses!

2. China + Comdoll data – China will also be under the spotlight a couple of times as it prints its GDP, industrial production, and retail sales reports. Its weak trade balance data did a number on the Aussie and Kiwi last week, so make sure you stick around when the top tier reports are printed! Australia and New Zealand won’t be left behind with Australia’s employment numbers and RBA meeting minutes and New Zealand’s CPI report. A pretty interesting week for the comdolls overall, don’t you think?

3. Profit-taking from long USD trades? – Will dollar bulls take a breather this week? With more non-U.S. related reports on tap, forex traders could take profits on their long dollar trades and pay closer attention to other major reports. Make sure you’ve locked in your stop losses on your dollar trades!

That’s it for the pre-week trading prep this week! How about you? Are you looking at anything interesting for possible trade opportunities?

Huck's Signature

P.S.: Remember to never risk more than 1% of a trading account on any single trade and to adjust position sizes accordingly. Create your own ideas and don’t follow what I do. Better yet, read the Risk Disclosure!

See also:
2014 HLHB Trend-Catcher Performance