Major Currencies Overview
Winner winner, chicken dinner! The Greenback topped the charts last week thanks to upbeat data and positive trade developments.
Can it keep those gains up, though? There are plenty of exciting catalysts to watch out for, including the FOMC statement and the NFP report. Read more.
The Loonie was also in very good spirits last week as it pulled off a strong finish on account of higher crude oil prices from Middle East tensions.
Canada’s monthly GDP and trade balance are the top-tier reports to look out for this time, although it’s still worth keeping close tabs on oil price action as usual. Read more.
EUR & CHF
In a reversal of fortunes, the euro managed to be the stronger among the two in the previous week as the franc reeled from talks of negative SNB deposit rates.
The euro zone flash CPI readings are up for release next and could provide clues on what the next ECB moves might be, which would likely influence franc direction as well. Read more.
The Brexit drama is far from over as the new PM seems to have upped the odds of a “no deal” situation, leading to resignations here and there.
This week, the attention could shift to monetary policy as the BOE will have its Super Thursday. That’s the rate statement, MPC minutes, and Inflation Report coming up yo! Read more.
The Japanese currency scored a few gains throughout the week but still ended up mixed against its forex peers as counter currency action was in play.
The upcoming BOJ statement could change all that, though, as traders seem pretty hopeful about additional easing at some point. Apart from that, good ol’ market sentiment might still push yen pairs around. Read more.
The Aussie was down in the dumps as dovish RBA commentary seems to have spurred expectations of yet another interest rate cut.
Australia’s quarterly CPI due this week could make or break these easing hopes while Chinese PMI readings could also influence the economic outlook. Read more.
The Kiwi also turned out to be a big loser for the week as it also reeled from the prospect of further RBNZ easing.
There’s not much in the way of top-tier reports from New Zealand, though, so Kiwi traders take cues from overall sentiment and AUD price action instead. Read more.
Charts to Watch:
The bullish Force is strong with this one! The long-term ascending channel on the pair’s daily time frame is very much intact, with price testing the support around the 1.7700 handle and setting its sights back up.
Stochastic is also pointing up to indicate that buyers have the upper hand and that the climb is more likely to carry on than to reverse. Still, a move below the recent lows could set off a major reversal!
Here’s another channel that’s worth watching. EUR/CHF has formed lower highs and lower lows inside a descending channel on its 4-hour time frame and looks prime for a pullback to resistance.
This happens to line up with the 61.8% Fibonacci retracement level around the 1.1100 major psychological mark, which coincides with an area of interest. Bears might be eager to return soon as stochastic is already indicating overbought conditions.
Lastly, here’s one for the break-and-retest traders out there! NZD/CAD recently busted through the top of its falling wedge pattern on the 4-hour time frame to signal that an uptrend is due.
Price is in the middle of a correction, though, and could retest the broken wedge resistance that lines up with the 61.8% Fib level. Stochastic is already indicating oversold conditions, so buyers might be ready to return once the oscillator turns back up.