This is Lost in the Exchange, the only FX newsletter you will ever need to read.

Here’s whats on the agenda this week:

It hardly comes as a surprise, anyone who follows me online will know how I feel about prop firms.

For those who don’t, here’s a recap.

Prop firms can be great tools for those who can pass and actually get paid (less than 1% of challenges taken). You see they operate like online casinos, take from the losers and give to the winners.

The reason they are so difficult to get paid from is because of their extremely strict rules, or because they just don’t want to pay you and find any reason not to (scams).

MetaQuotes have clamped down on prop firms licence agreements causing all prop firms to make a switch to what will most likely be CTrader.

Even the European based industry leaders FTMO are not showing up on MT5 servers.

It comes as no surprise given the nature of the industry, I think gambling restrictions would be more apt than financial regulations.

Traders are playing a virtual game essentially at the mercy of companies who try just about anything to ensure they fail.

Anyways, not to worry, it would appear for now that business will return to normal shortly as prop firms make the switch to the necessary platform (and ditch the outdated meta trader).

High volatility on Tuesday as a result of the US inflation reports leaves the DXY at a turning point.

A huge push into new highs for the DXY has left the door open to the strong possibility of a continuation. However we will be in a crucial zone early in the week whether we break or hold.

Failure of the supply zone would be the first sign of a potential shift back to the downside for DXY.

This of course would mean only looking for long positions on USD crosses.

The weekly chart has really lacked bullish momentum over the past 4 weeks despite the huge push post CPI, a lot of those gains were given back towards the end of the week.

After a long period of consolidation, GBP has found the sellers to break down. However if we are considering the possibility of USD weakness in the coming week(s), then we should really only be interested in cable longs.

Firstly, a sharp sell off sub 1.2500 would be preferred, grabbing liquidity and trapping sellers.

Intraday traders could well consider short positions into our ‘buy’ zone.

GBP futures paint a similar story. Some 3 key levels to be tested just below the lows which could fuel the next bullish run.

Be patient and open to the possibility of a quick dump below 1.2500 below considering any medium term longs.

Stay up to date with the markets this week and follow me on twitter.

That’s all for this week.

Trade safe.