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Start your trading prep with a quick review of last week’s forex action from my buddy Pip Diddy, an overview of catalysts lined up for the major currencies, and the charts to watch this week.

Major Currencies Overview

USD

A couple of data misses weren’t enough to stop the dollar from emerging as the runaway winner in the previous week, drawing support from easing geopolitical risks.

Sentiment could continue to drive dollar price action for the most part of this week, before the spotlight shifts back to U.S. fundamentals on the release of the Advance Q2 GDP report on Friday. Read more.

CAD

Opposing signals from rising crude oil prices and a disappointing BOC statement led to a mixed run for the Loonie in the past few days.

There are no major reports lined up from Canada this coming week, but Governor Poloz has a speech coming up that could make or break policy expectations. Read more.

EUR & CHF

The lack of major reports from the euro zone left the shared currency more sensitive to European bond yields while the lower-yielding franc gave up ground dollar demand picked up.

The euro could enjoy more volatility as the ECB statement is coming up and market participants appear to be bracing fore more upbeat remarks. Read more.

GBP

Downbeat U.K. data cast some doubts on BOE tightening prospects, leaving the pound down in the dumps for the previous week.

Only the preliminary GDP data is due from the U.K. this week, and pound traders could keep pricing in gloomy expectations for this report. Read more.

JPY

A rebound in risk aversion allowed the yen to get back on its feet during the latter half of the week, although it still caved to dollar strength.
Monetary policy will be back in focus for the Japanese currency as the BOJ gears up to make its interest rate statement on Friday. Read more.

AUD

The Aussie had a mixed round as it seemed to move to the tune of its counterparts rather than setting its own course.

Quarterly CPI data is on Australia’s docket this week and could impact RBA policy expectations. Other than that, risk sentiment could continue to push AUD pairs around. Read more.

NZD

The tide turned against the Kiwi last week as it slumped to last place against its forex rivals, especially when risk aversion popped its head back in the markets mid-week.

There are no major reports due from New Zealand this week, so the Kiwi could still keep reeling on account of downbeat remarks from the new RBNZ head. Read more.

Charts to Watch:

USD/JPY: 1-hour

USD/JPY 4-hour Forex Chart
USD/JPY 1-hour Forex Chart

Here’s a quick bullish momentum play on USD/JPY as price just recently tested the mid-channel area of interest that lines up with a small rising trend line.

If you’re dollar bullish, you could ride the move up to the resistance. But if you’re waiting for another selloff, a countertrend play at the top near the 108.00 handle could be your bet.

EUR/NZD: Daily

EUR/NZD Daily Forex Chart
EUR/NZD Daily Forex Chart

If you’re looking for a longer-term momentum play, this one on EUR/NZD also looks like a good trend to catch. Price has already moved past the mid-channel area of interest and has a bit more room before hitting the very top at the 1.7225 level. Just make sure you keep tabs on the ECB announcement when trading this one!