Can you believe we’re down to the last forex trading days of the year? Here are possible chart setups and catalysts on the major dollar pairs!
Weekly Inflection Points to Watch
|
EUR/USD |
GBP/USD |
USD/JPY |
USD/CHF |
|
| Open Price | 1.0440 | 1.2482 | 117.95 | 1.0267 |
| Last Week’s High | 1.0671 | 1.2728 | 118.67 | 1.0345 |
| Last Week’s Low | 1.0366 | 1.2376 | 114.74 | 1.0084 |
| Top Weekly ATR | 1.0538 | 1.2639 | 119.36 | 1.0349 |
| Bottom Weekly ATR | 1.0342 | 1.2326 | 116.53 | 1.0186 |
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. BOJ statement – In a few hours the BOJ will publish its last monetary policy decision for the year. Coincidentally, it would also be the first one since Trump won the Presidential elections in November. While market players aren’t expecting fireworks from the central bank, some believe that the BOJ will adjust its tone to reflect the yen’s sharp deterioration for the past couple of weeks. Any sign of Kuroda and his team
2. U.S. economic reports – Aside from Janet Yellen’s speech scheduled in a few hours, we’ll also see the EIA crude oil inventories on Wednesday and Uncle Sam’s core durable goods and final Q3 GDP reading on Thursday. Holiday volatility might be upon us, but keep your eyes out for possible trade opportunities during these events!
3. End-of-month profit-taking – Can you believe we’re down to the last days of the year? Watch out for possible profit-taking, okay? While not a lot of forex traders are expecting yuuuuge reversals from profit-taking, there might be a pair or two that will see some retracements over the next couple of says. Practice constant vigilance especially if you have any open 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?
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 trading books, and 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.
