Trading Futures and trading Forex this week could result in nice moves. We don’t have such a heavy report list this week as we did last week. However, a week from this Wednesday, on December 16, is when the Feds are likely to raise interest rates. In addition to the market reports, if trading futures and forex longer term, I have posted the charts for the monthly, weekly, daily and 90 minute chart (corresponds for the ADX magenta peaks that come in on the daily chart). For standard option traders, there may be some interesting credit spread opportunities.
Remember that if you are trading forex, the currency futures may have an inverse relationship. For example, the Yen currency future has an inverse relationship to the USDJPY spot forex symbol. For spot forex symbols that begin with USD, the relationship is an inverse. If the USD is the last in the spot forex symbol, then the movements are generally the same although the price may be slightly different.
Trading Forex and Trading Futures: Market Reports
The report list below shows all the major reports (considered to be high volatility reports). I will be trading forex pairs with the most movement expected, like the AUDUSD and GBPUSD. I have highlighted the anticipated movement on both of these. Additionally, although we do have the Swiss National Bank rate announcement this week, I generally do not trade it as it does not typically move the markets very much. Click on the image to expand it.
Trading Futures and Trading Forex – Longer Term Views
Also, we have some interesting patterns on the longer term charts. A trader could opt to trade with standard options, although a couple of them (like Gold) could be traded using binary options.
You will need to click on the charts to expand them. Also note that I am using the 90 minute for the review as it correlates to the daily chart ADX peaks.
Trading Futures: Gold – Gold has been in a great downtrend but pulled back significantly on Friday. It is currently at the ATR on the Daily chart and the 90 minute chart shows the ADX is overbought. I would anticipated a downward movement back to the ATR (confirming the resistance on the Daily). I would look at the Gold Binary Options to see if there are any tiny options available for the move back to the ATR for the 90 minute chart.
Trading Futures: Dow Jones – The Dow also moved up on Friday. However, there is an ATR directly above price on the daily, a congestion dot on the weekly, and an additional ATR above price on the monthly. This signals resistance above the Dow Jones and indicates an upcoming move to the downside. I would be watching the 90 or 180 for a potential retracement as the ADX is approaching the overbought area on the 90 minute chart. A longer term option trader could potential do a credit spread anticipating price to stay well below the 18524 and 18081 areas. Binary Options could be placed if the 90 or 180 minute ADX magenta peaks comes in.
Trading Futures: ES (S&P 500) – Has pretty much the same setups as the Dow. Resistance areas have formed on the Daily, Weekly and Monthly charts. Longer term credit spreads to the downside for price staying below 2153 and 2173 could be entered or binary options could be placed if the ADX magenta peaks start to come in.
Trading Futures: Crude – Just like Gold, Crude has been in a significant downtrend, which is great for our gas tanks. We do have a retracement coming in on the 90 minute chart. Longer-term views do not show an oversold ADX yet. It could be January before they become oversold. Without a magenta peak on the ADX indicator, I would only anticipate shorts for the longer term.
Trading Forex: Aussie Dollar – The Aussie Dollar monthly chart has made an ADX magenta peak. However, the Weekly has an ATR immediately above it. The daily has managed to break the row of congestion dots and is moving up. Since the weekly has made a higher low, we may see the ATR broken. A cheap binary option to the upside this week could produce profits as price very well could go to at lease .7800 as it stands right now on the monthly. Look for the .7500 area for the weekly option. The binary option would need to be under $20. A long credit spread could be done for standard option trades as well.
Trading Forex: British Pound – The British Pound has their rate announcement this week. As it stands right now the 90 minute is in congestion, the daily is at an ATR but the Weekly is at a Congestion Dot. Longer term I would anticipated the British Pound to go up to about 1.5556 but it would need to break two ATRs on the lower timeframes, the daily and the 90 minute chart. The 90 minute failed to break thru the congestion so it should at least retest that ATR. I would anticipate a potential flip of the 90 minute ATR and then a retest. A longer term standard option credit spread to the upside based on the weekly congestion dot could be entered as it looks like it may hold.
Trading Forex: Yen – The Yen has a 90 minute ADX magenta peak. Should at last go up to the ATR on the 90 minute. Nice binary option trade at the open tonight on it if you can find a cheap one and you normally can. Remember that the currency future an spot forex have an inverse relationship because the USD is the first in the spot forex pair. This means if the JY future is going up, the USDJPY should go down. (Same with the USDCHF and Swiss Franc currency future symbols). The Daily does have an ATR above it and the Weekly is in congestion. It should go up and test the ATR on the weekly. This would make for a potential nice credit spread longer term.
Trading Forex: Swiss Franc – Please note that the Swiss National Bank does have the rate announcement this week. Short term we could see the Swiss Franc future go down (at an ATR on the 90 minute and has a wide bar on the daily plus the ADX indicator went immediately from red to blue during a histogram magenta bar phase. This normally indicates price will need to retrace. The weekly may retrace back to the ATR at 1.0431, as it just recently broke through the congestion dots and it will need a test to ensure there is still overhead resistance.