Analysis of the high probability opportunities for this week in Forex, Indices & Commodities.
Click on the video to watch the full breakdown
As a trader, there are two ways to look at the big news events on the economic calendar: either you’re afraid of the uncertainty, or you embrace it and find a way to make use of it.
If you’re in fear, avoid the idea altogether and come back another day. There’ll always be another opportunity.
If you’re not, consider combining multiple factors to cement your idea to line up with the event/s. That is: the higher timeframe direction, cheap/expensive areas to watch for, and clear shifts in price action on news timing.
The most significant events of all are the major Central Banks’ announcements, of which this week there are several to pay attention to.
- JPY – Rate announcement
- USD – Rate announcement & FOMC
- GBP – Rate announcement
- USD – NFP
Therefore, any pair you have on your shortlist will more-likely-than-not, have some kind of volatility.
Consider that, before the news, whether it’s a Forex chart or Indices, you maybe have some unpredictable price action, as the markets prepare for their moves. Adjust your plan accordingly.
This week, we don’t have any JPY pairs on the shortlist (because of the unclear movements in the Yen overall), but we do have GBP and USD.
In addition to the above, here are some more factors to take into account for your risk management:
- It’s a new month, which brings with it new Monthly candles to consider
- We have 3 pairs with the Euro, all with a weighting towards buying strength. That means you don’t want to be buying all of them, because a loss in one EUR market means a likely loss in another EUR chart.
- The day of the big news event, as well as the day before, are statistically the riskiest times to enter.
Whatever happens this week: If in doubt, stay out. Remain consistent by sticking to the clean and clear ideas.
In this video we go over these opportunities for the week:
Written by: Dima Mihailovich, Technical Analyst for Forex Prop News
Contact and follow Dima on Twitter: @dimafpn
(Please note: All comments made in this video and article are not trading or investment advice and are for education purposes only. You are responsible for your own decisions and the associated risk.)