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We’ve got a busy forex trading week ahead, folks! Here are the top 3 potential market catalysts as well as chart inflection point on the majors for those who are planning on trading the major dollar pairs!

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

1.0674

1.0692

1.0524

1.0769

1.0579

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

WO

PWH

PWL

tWATR

bWATR

1.2170

1.2301

1.2135

1.2291

1.2019

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

WO

PWH

PWL

tWATR

bWATR

114.68

115.51

113.55

116.04

113.33

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

WO

PWH

PWL

tWATR

bWATR

1.0100

1.0171

1.0072

1.0175

1.0015

Potential Catalysts:

1. Central bank decisions – This week we’ll have not one, not two, but FOUR central bank events that could rock the forex markets. Five if you count Draghi’s speech in Frankfurt today. The Fed is widely expected (because the members all but said it) to raise its interest rates this week while the rest are expected to maintain their current policies. Remember that any shifts or new updates on these central banks’ forward guidance are likely to move the major currencies, so make sure you stick around when these events hit the newswires!

2. Brexit updates – On Monday afternoon London time the U.K.’s MPs will vote on the Brexit Bill amended by the House of Lords. If you recall, the latter introduced more “meaningful” parliamentary say on the final deal and proposed guarantees on the protections for EU nationals in the U.K. If it passes both houses, then the bill will go for Royal Assent, after which May can formally trigger Article 50 to start the negotiations. Some reports even say May can pull the trigger as soon as tomorrow!

3. Tier 1 reports – As if central bank events and progress on Brexit aren’t exciting enough, we’ll also see top-tier reports such as the U.K.’s jobs numbers, Uncle Sam’s CPI and retail sales reports, and Australia’s employment data. All of these have the potential to dictate intraday trends for their respective currencies, so don’t dismiss them as non-movers!

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.