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Welcome to a fresh NFP week, forex friends! If you’re planning on trading the major dollar pairs at all, then you might want to look at the important chart levels and catalysts lined up. Here are the deets!

1-Hour Charts of the Majors

Purple Line: weekly open prices (WO)
Blue Line: weekly highs and lows (PWH, PWL)
Red Line: top and bottom weekly ATRs (tWATR, bWATR)
Blue MA: 100 SMA
Red MA: 200 SMA

EUR/USD 1-hour Forex Chart
EUR/USD 1-hour Forex Chart

WO

PWH

PWL

tWATR

bWATR

1.0609

1.0699

1.0520

1.0631

1.0494

GBP/USD 1-hour Forex Chart
GBP/USD 1-hour Forex Chart

WO

PWH

PWL

tWATR

bWATR

1.2286

1.2479

1.2214

1.2415

1.2156

USD/JPY 1-hour Forex Chart
USD/JPY 1-hour Forex Chart

WO

PWH

PWL

tWATR

bWATR

113.91

114.75

111.68

115.11

112.59

USD/CHF 1-hour Forex Chart
USD/CHF 1-hour Forex Chart

WO

PWH

PWL

tWATR

bWATR

1.0086

1.0146

1.0009

1.0155

1.0009

Potential Catalysts:

1. NFP report – Can’t have the NFP week without the NFP report! Now that the Fed member have all but announced an interest rate hike in their meeting this month, traders are now focused on the pace of their tightening. Upside surprises in this week’s ADP, initial jobless claims, and non-farm payrolls report could fuel speculations that the Fed’s second rate hike this year will be right at the heels of their first. But if the reports surprise to the downside, then we might see a bit of profit-taking for the dollar.

2. ECB’s statement – On Thursday at 2:30 pm GMT we’ll see what the European Central Bank (ECB) has to say. Last time Draghi and his team have downplayed increases in inflation, saying that they’re mostly due to temporary factors (read: higher oil prices). Will we see more cautious optimism from the ECB this week? Or will they revert to their bullish ways and highlight the improvements in the economy?

3. Overall risk appetite – A couple of trading sessions ago we saw just how much risk sentiment could move major currencies like the yen. Updates on France’s Presidential elections, for example, could do a number on the euro faster than any reports scheduled from the region this week. And then there’s all the skirmish in the South East Asian region, which could affect the overall mood of market players across the globe. Better stay glued to the tube for any updates that might bring forth a risk on/risk off trading environment!

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:
My Q4 2016 Forex Trade Review and Reflections
HLHB System’s 2016 Performance Summary
Read the risk disclosure!

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.