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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

1.1018

1.0999

1.0875

1.1101

1.0920

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

WO

PWH

PWL

tWATR

bWATR

1.2883

1.2830

1.2982

1.3097

1.2870

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

WO

PWH

PWL

tWATR

bWATR

112.96

113.05

111.20

114.07

111.85

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

WO

PWH

PWL

tWATR

bWATR

0.9880

0.9966

0.9858

0.9944

0.9816

Potential Catalysts:

1. French elections aftermath – Now that France has chosen Macron as their next leader, all eyes will be on how the market reacts to the news. Will it cause a buy-the-rumor-sell-the-news situation? Or will traders extend their optimism for another week?

The ECB is also bound to get under the spotlight now that the European region has passed another hurdle. Will Draghi and his team proceed to taper their stimulus as many are expecting? Or will he maintain his dovish stance while cautiously recognizing improvements in the euro zone?

2. BOE monetary policy decision – The euro won’t be the only major currency in play this week! The pound also has a chance to see volatility when the BOE publishes its monetary policy decision AND inflation report on Thursday.

In their last meeting Mark Carney and his gang hinted that “monetary policy may need to be tightened sooner and to a greater degree” if “aggregate demand growth remains resilient.” Will they maintain their hawkish stance or will recent skirmishes in May’s Brexit plans affect the central bank’s biases?

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.