Weekly Trading Prep (November 14 – 18, 2016)

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

EUR/USD

GBP/USD

USD/JPY

USD/CHF

Open Price 1.0892 1.2582 106.87 .9892
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

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. 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?

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:
Here’s my Q3 2016 Trade Review and Reflections
Read the 5 lessons I’ve learned in 2015