Another week, another chance to trade 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||1.1301||1.2675||106.96||0.9898|
|Last Week’s Low||1.0830||1.2354||101.19||0.9550|
|Top Weekly ATR||1.0924||1.2758||108.14||0.9975|
|Bottom Weekly ATR||1.0734||1.2407||105.60||0.9809|
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. Central bankers’ speeches – This week we’ll hear from major central bankers such as BOJ’s Kuroda, ECB’s Draghi, RBA’s Lowe, and the Fed’s Janet Yellen. This will be the first time we’ll officially hear from these head honchos since Trump secured his Presidency. Watch out for their reactions as well as any hints on their future policy plans during the Trump administration!
2. Top-tier U.K. events – It’s the U.K.’s turn under the spotlight this week with the CPI, employment numbers, and retail sales reports scheduled for release. If you recall, the pound saw bits of intraday rallies last month after the reports reflected better inflation and employment reports. Will the pound see similar gains this week? Keep your eyes glued to the tubes on this one!
3. U.S. CPI report – One of the main reasons why the dollar rallied last week was that Trump’s infrastructure plans would lead to a higher inflation and maybe push the Fed to raise its rates faster than expected. A strong inflation would signal that the Fed would make the Fed less hesitant to raise their rates even before Trump’s plans take effect.
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!