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Can you believe we’re already into the middle of the week? In case you’re just getting back into the swing of things like I am, then here are the potential inflection points and catalysts for the major currency pairs this week!

Weekly Inflection Points to Watch

EUR/USD

GBP/USD

USD/JPY

USD/CHF

Open Price 1.0516 1.2346 117.12 1.0196
Last Week’s High 1.0655 1.2389 117.82 1.0322
Last Week’s Low 1.0372 1.2201 116.05 1.0059
Top Weekly ATR 1.0621 1.2496 118.45 1.0284
Bottom Weekly ATR 1.0411 1.2196 115.80 1.0108

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. NFP week – This week we’ll see December’s NFP numbers, which should either support or cast doubts over the Fed’s hawkish decision last month. Before Friday’s release though, we’ll first see the initial jobless claims, ISM services PMI, AND the latest FOMC meeting minutes. Be sure to watch the dollar’s price action closely!

2. PMIs, PMIs everywhere – China, most of the euro zone, and the U.K. will print their first PMIs for the year this week. They don’t usually affect forex price action for long, but they can cause enough volatility especially if they print significant hits or misses. Hit up our forex calendar to see which PMIs you should be paying attention to!

3. Start-of-year risk sentiment – The dollar killed most of its counterparts last year while equity markets flirted with record highs. Will we see the same optimism from forex traders this month? Or will profit-taking from last year’s gains reign supreme?

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

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.