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Talk about starting the week with a bang! Not only do we have interesting inflection points on the charts this week, but we also have FOUR potential catalysts that might move 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

1.0913

1.0778

1.0602

1.1004

1.0822

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

WO

PWH

PWL

tWATR

bWATR

1.2829

1.2906

1.2515

1.2951

1.2707

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

WO

PWH

PWL

tWATR

bWATR

110.55

109.49

108.12

111.73

109.38

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

WO

PWH

PWL

tWATR

bWATR

0.9908

1.0058

0.9940

0.9978

0.9838

Potential Catalysts:

1. French elections aftermath – Market players are all thumbs up over Macron’s lead in the first election round. Question is, will the trend last? Pollsters (who just got their reps back) put Macron on the top spot with a comfortable lead over Le Pen, but I won’t be surprised if the margin tightens over the next couple of days!

2. Trump’s tax announcement – Last Friday Trump spent a bit of time under the spotlight when he announced that there would be “a big announcement on Wednesday having to do with tax reform.” Investors shrugged off the reports ahead of France’s weekend elections but, based on how they reacted to Mnuchin’s own tax announcement, traders are still very much interested on the Donald’s next plans.

3. BOJ and ECB’s policy decisions – TWO central banks are scheduled to publish their monetary policies this week. Both the BOJ and the ECB have hinted that they have no plans to ease the pedal from the metal. However, any signs of optimism (or at least less dovishness) from either central bank could still fire up forex trading volatility. What do you think?

4. GDP reports – On Friday we’ll see not one, not two, but THREE GDP releases. The U.K. will be first to publish its numbers, while Canada and Uncle Sam will show theirs in the succeeding trading session. Which release will move its domestic currency the most? Watch out for these ones!

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!

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.