Trade setups for the week ahead Oct 30, 2016

Last week ended on a bearish note for the U.S. Dollar gradually selling off all the way through Friday’s market close on positive economic releases indicating increased likeliness of a December rate hike. Recapping last week’s economic releases as follows:

  • U.S. advanced annualized q/q GDP increased 2.9% beating the 2.5% expectations
  • U.S. Unemployment Claims came out to 258K beating expectations of 261K

U.S. election for the week ahead may put a damper on the markets for the week ahead. Asian markets opened lower on election risks and may drag onto the North American session as well.

For the time being, I have three pairs that I am currently watching at the moment.

screenshot-at-oct-31-00-14-34
EURUSD 1-Hour

I’m currently in an EURUSD short position take on market open as price was exiting the current resistance zone. This zone was established when it was previously sold off and produced the best payout ratio when my trade was entered right in the zone. Since exponential growth is not sustainable, my trend-line plans out my time weighted exit as price retraces to someone in this area.

screenshot-at-oct-31-00-20-55
AUDNZD 1-Hour

AUDNZD is the next pair I’m watching at the moment. I have extended my usual watchlist beyond major pairs given the chaotic price movements they have been in. My proposed short entry zone at the 1.0655~ price zone marking the next level of offer orders imbalances.

screenshot-at-oct-31-00-25-37
USDJPY 1-Day

Finally, USDJPY continues to be on my watchlist. As mentioned in last week’s trade setups for the week ahead, this pair broke out above the daily range. After the initial break-out, price retraced back for a retest awaiting a possible long entry.

screenshot-at-oct-31-00-28-15
USDJPY 1-Hour

Looking over on my hourly time-frame, price is currently testing the 104.44~ price zone. However, the long entry is not optimized reducing the reward to risk ratio. If price does return back to this zone and holds up, I plan on going long on this relative double bottom setup.

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