Forex Trading Opportunities for the Week Ahead 11 December 17: FXRenew

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I plan my trading for the week ahead each weekend. Here are the Forex trading opportunities I will bestalking this week.

Note that this is my current view, but if market conditions change my view can change too. Generally I will trade in alignment with what I have noted here, though I will wait for a set-up before I enter. I base my view on technical and fundamental information. This is my beliefs and you are welcome to have opposite ones. Having a plan is more important than the actual direction for me. 

  • Wait DXY  – MT is sideways normal. The dollar has shifted back into a sideways MT. NFP came in decent enough to allow for a the Federal Reserve to hike rates next week. The outlook remains for more hikes next year and observers will watch closely for any change in the Federal Reserves rhetoric. There is hope of tax reform progress which is also boosting the dollar. Obviously the main event next week is the FOMC meeting where rates are almost certainly going to be raised
  • Buy GBP/USDTrend – MT is bull normal. Despite progress being made on a Brexit agreement with the EU, the GBP sold off on Friday. While we may be moving onto the next phase of negotiations, concerns still remain around the Irish Border and EU rhetoric remains hardline on some points. Buy but there will be ongoing volatility related to Brexit ,FOMC and this weeks BOE meeting.
  • Wait USD/JPY.  – MT is sideways normal. The pair has moved back into a sideways MT. While USDJPY remains susceptible to the nervous price action in stocks, the pair has headed higher on bullish stocks, improving US bond yields and USD optimism.
  • Sell AUD/USD. –  MT is bear normal. Despite positive data out of China, the Aussie is struggling on the back of poor data and a dovish RBA. Continue to sell for a move towards 0.7400.
  • Wait EUR/USD. –  MT is sideways normal. The EUR sold off this week, predominately on USD optimism. The unresolved situation with the German elections and expectations for a dovish ECB meeting this coming week don’t help matters.
  • Wait NZD/USD.  –  MT is sideways normal. Key support at 0.68 is holding for now. Negativity remains around economic performance and the political uncertainty, but the market is oversold and bad news is priced in. If we get USD weakness and a move back above .6950 then there is a good risk/reward buying opportunity.
  • Wait USD/CHF. – MT is sideways normal. The pair bounced for most of last week on a recovery in risk assets and USD optimism.
  • Wait USD/CAD. – MT is sideways quiet. Despite the prior weeks positive data was ignored by the BOC whom expressed they are in no rush to hike rates. The repealing of NAFTA should also continue to trouble the CAD. Look to for move above 1.2950 to buy.
  • Wait EUR/GBP.  – MT is sideways normal. Despite positive Brexit sentiment, the pair remains range bound. Wait for now.

Crosses

  • Wait EUR/CHF. – MT is sideways normal. Wait.
  • Sell AUD/JPY. Trend – MT is bear  normal. Continue to sell.
  • Wait NZD/JPY. – MT is bear volatile. Wait.
  • Wait GBP/JPY.  – MT is bull normal. Reversing off resistance wait.
  • Wait EUR/JPY. – MT is sideways normal. Wait.
  • Wait CAD/JPY.  – MT is bull volatile. Wait.
  • Wait CHF/JPY.  – MT is sideways normal. Wait
  • Buy GBP/NZD.  Trend – MT is bull normal. Continue to buy.
  • Buy EUR/NZD. Trend – MT is bull normal. Continue to buy.
  • Wait AUD/NZD. – MT is sideways quiet. Wait.
  • Buy EUR/AUD. Trend – MT is bull normal. Continue to buy.
  • Buy GBP/AUD.  Trend – MT is bull normal. Continue to buy.
  • Wait AUD/CAD. –  MT is sideways normal. Wait.
  • Buy GBP/CAD. Trend –  MT is bull normal. Look to buy.
  • Wait EUR/CAD.  –  MT is sideways volatile. Wait.
  • Wait NZD/CAD.  – MT is sideways normal. Wait.
  • Buy GBP/CHF. Trend – MT is bull normal. Look to buy.
  • Sell CAD/CHF. – MT is bear normal. Look to sell.
  • Wait NZD/CHF.  – MT is sideways normal. Wait.
  • Sell AUD/CHF.  Trend – MT is bear normal. Continue to sell.

Other Markets

  • Wait USDSGD Trend – MT is bear volatile. Wait.
  • Wait USDCNH  – MT is sideways normal. Wait
  • Sell Gold. Trend – MT is bear normal. Look to sell.
  • Sell Copper. Trend – MT is bear normal. Look to sell.
  • Wait Oil. – MT is sideways normal. Wait.
  • Buy S&P 500. Trend – MT is bull normal. Continue to buy.
  • Wait DAX. – MT is sideways volatile. Wait.
  • Wait Nikkei. – MT is sideways normal. Wait.
  • Wait T-Notes.  – MT is sideways normal. Wait.

View bank reports and fundamental analysis in the chatroom (members only)

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Economic calendar for the week ahead:

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(MT = Market Type: Click for more information on market types.)

Trend: Market is trending in the direction I have listed and I expect it to continue. 

Reversal: I am looking for a reversal against the current trend.

Breakout: The currency pair is breaking out of a range. 

About the Author

Sam Eder is a currency trader and author of the Definitive Guide to Developing a Winning Forex Trading System and the Advanced Forex Course for Smart Traders (get free access). He is the owner of  www.fxrenew.com a provider of Forex signals from ex-bank and hedge fund traders (get a free trial). If you like Sam’s writing you can subscribe to his newsletter.

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