A big week ahead for the dollar! Here are potential inflection points you should watch out for if you’re planning on trading the majors this week.
Weekly Inflection Points to Watch
|Last Week’s High||1.1138||1.2559||105.24||0.9910|
|Last Week’s Low||1.0879||1.2144||102.55||0.9681|
|Top Weekly ATR||1.1146||1.2631||105.24||0.9854|
|Bottom Weekly ATR||1.0975||1.2272||102.89||0.9696|
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
3 Potential Catalysts:
1. U.S. Presidential elections – This week, Average Joes and Janes will vote for the 45th President of the biggest economy in the world. For forex traders, a Clinton win is generally perceived as continuation of current economic policies, while Trump’s extreme policy stances are seen as bearish for the economy and the Greenback. We’ll likely see tight trading ahead of the elections and a huge rally/selloff once a winner is announced. Who do you think will become the next President?
2. RBNZ monetary policy statement – Though I don’t think any other theme will trump (pun intended) the U.S. elections, we do have the RBNZ’s monetary policy announcement also scheduled this week. Watch out for a possible rate cut and its impact on risk sentiment!
3. Oil updates – With the official OPEC meeting only a few days away, oil bulls and bears will likely pay closer attention to any updates that might give clues on whether or not the cartel could get other major oil producers to agree on a production cap or even a cut.
That’s it for the pre-week trading prep this week! How about you? Are you looking at anything interesting for possible trade opportunities?
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!