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.
- Sell DXY Trend – MT is bear normal. The Dollar continues to struggle with a dovish sounding central bank, poor GDP and inflation data and the inability of Trump to make progress on his planned reforms. The market is starting to doubt that there will be another rate hike at all this year. Keep selling. Watch for NFP on Friday.
- Buy GBP/USD. Breakout – MT is Bull normal. While there was some improvements in UK data, the pair has made new highs on the back of USD weakness. Look to buy. Watch out this week for the Bank of England meeting and inflation data – a current focus for market sentiment.
- Sell USD/JPY. Trend – MT is bear normal. We have seen a little bit of a sell-off in equities which has seen the pair slide into the end of the week. Falling US Bond yields continue to weigh on USDJPY and we can expect the move lower to continue.
- Buy AUD/USD. Trend – MT is bull normal. Despite the RBA looking to talk down the currency the bull market persists on the back of USD weakness, the carry trade and steadying commodity prices. Continue to buy. RBA meeting this week.
- Buy EUR/USD. Trend – MT is bull normal. The EUR continues it’s positive momentum on the back of USD weakness. Data continues to remain strong and the bull MT persists. Continue to buy.
- Buy NZD/USD. Trend – MT is bull normal. As is the current theme, the Kiwi is benefiting from USD weakness and its superior yield. There is a dairy auction this week to watch out for.
- Wait USD/CHF. – MT is sideways volatile. We have bounced off major support on a wave of across the board CHF weakness. The SNB is supporting the move by re-affirming it’s commitment to a weaker Swiss Franc. But really this is old news and we have simply seen a sentiment shift on the back of CHF bearish flows.
- Sell USD/CAD. Trend – MT is bear normal. A weak USD and rising oil prices continue to support the trend started by the BOC. Keep selling.
- Buy EUR/GBP. Trend – MT is bull normal. The pair remains in a bull MT and a couple of bullish hammers suggest that the rise will continue.
Crosses
- Buy EUR/CHF. Trend – MT is bull normal. Continue to buy.
- Sell AUD/JPY. Reversal – MT is bull normal. We have a minor double top forming off resistance. A contrarian selling opportunity.
- Buy NZD/JPY. – MT is bull normal. Buy, but we need to break and hold above resistance at 83.40.
- Wait GBP/JPY. – MT is sideways quiet. Look to sell below 1.4360
- Buy EUR/JPY. Trend – MT is bull normal. Continue to buy, wait for a break above 131.20
- Buy CAD/JPY. Trend – MT is bull normal. Continue to buy, but careful of the minor topping pattern in play.
- Sell CHF/JPY. Trend – MT is bear normal. Look to sell.
- Sell GBP/NZD. Trend – MT is bear normal. Continue to sell.
- Wait EUR/NZD. – MT is sideways quiet. Wait.
- Wait AUD/NZD. – MT is bull volatile. Wait.
- Wait EUR/AUD. – MT is sideways volatile. Wait.
- Sell GBP/AUD. Trend – MT is bear normal. Continue to sell.
- Wait AUD/CAD. – MT is sideways volatile. Wait.
- Sell GBP/CAD. Trend – MT is bear normal. Continue to sell.
- Sell EUR/CAD. Trend – MT is bear normal. Continue to sell.
- Sell NZD/CAD. Trend – MT is bear normal. Continue to sell.
- Buy GBP/CHF. Breakout – MT is bull normal. Look to buy.
- Buy CAD/CHF. Trend – MT is bull normal. Continue to buy.
- Buy NZD/CHF. – MT is bull normal. Look to buy,
- Buy AUD/CHF. – MT is bull normal. Continue to buy.
Other Markets
- Buy Gold. Trend – MT is bull normal. Look to buy.
- Buy Oil. Trend – MT is bull normal. Look to buy.
- Buy S&P 500. Breakout – MT is bull normal. Continue to buy.
- Sell DAX. Trend – MT is bear normal . Continue to sell.
- Wait T-Notes – MT is sideways normal. Wait.
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Economic calendar for the week ahead:
(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.