Another week, another chance to catch some pips! If you’re planning on trading the dollar this week, then you should check out these charts and potential catalysts for the majors!
Weekly Inflection Points to Watch
|
EUR/USD |
GBP/USD |
USD/JPY |
USD/CHF |
|
| Open Price | 1.0534 | 1.2576 | 115.44 | 1.0188 |
| Last Week’s High | 1.0873 | 1.2776 | 115.37 | 1.0215 |
| Last Week’s Low | 1.0530 | 1.2550 | 112.90 | 1.0021 |
| Top Weekly ATR | 1.0632 | 1.2733 | 116.86 | 1.0270 |
| Bottom Weekly ATR | 1.0436 | 1.2420 | 114.03 | 1.0107 |
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. FOMC statement – For weeks (or even months) now market players have been pricing in a rate hike by the Fed. The trend became even more pronounced after Uncle Sam printed a strong GDP report and Trump’s taxx and infrastructure plans buoyed market sentiment. Now that a rate hike is a done deal, traders will focus on the Fed’s tone and its plans down the road. A hawkish statement would further boost the dollar, while cautiousness could fuel profit-taking moves near the end of the year. Make sure you don’t miss the event!
2. Tier 1 reports from the U.K. – This week the U.K. will print its inflation, employment, and retail sales numbers. In addition, the Bank of England (BOE) will also release its monetary policy decision for December. Analysts have mixed expectations from the reports while the BOE isn’t expected to make any changes. In any case, stick around for the releases as they’ll likely cause increased volatility for the pound pairs!
3. Major U.S. reports – Though the FOMC will be under the spotlight, there are also economic reports from Uncle Sam that could shed light on the Fed’s biases down the road. The core retail sales report will be released on Wednesday before the Fed’s decision, while the CPI and Philly Fed index reports will be printed on Thursday. Last but not the least is the building permits numbers, which will be released on Friday.
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!
See also:
Here’s my Q3 2016 Trade Review and Reflections
Read the 5 lessons I’ve learned in 2015
These are some of our favorite books if you want to get in deeper with price action analysis & charting tools. BabyPips.com receives a small credit from any purchases through the Amazon links above to help support the free content and features of our site…enjoy!
This content is strictly for informational purposes only and does not constitute as investment advice. Trading any financial market involves risk. Please read our Risk Disclosure to make sure you understand the risks involved.