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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.
FX Week Ahead

Major Currencies Overview

USD

The Greenback was a net loser for the week as it started off strong but fell victim to risk-taking and positive U.S. data towards the latter part.

Up ahead, the U.S. currency is waiting on a few speeches from Fed head Powell, along with the minutes of the latest FOMC meeting. Read more.

CAD

The Loonie found itself at the very bottom of the forex pile as geopolitical risks and weaker crude oil prices came in play.

The Canadian jobs report is up for release, but this ain’t due until the end of the week so the Loonie could still be sensitive to sentiment. Read more.

EUR & CHF

Downbeat data from the euro zone weighed on the shared currency while the Swiss franc was also bogged down by weak reports and a bit of risk-taking.

Another set of medium-tier reports are lined up from both the euro zone and Swiss franc, and the ECB is also ready to release the minutes of its latest policy meeting. Read more.

GBP

Pound pairs seemed to be in a tense mood in the previous week as traders waited for clarity on Brexit developments.

PM Johnson has a big deadline coming up on October 11, but U.K. economic reports might still push sterling around before that. Read more.

JPY

Geopolitical risks and global growth concerns were driving factors for yen pairs last week, pushing the currency up to the top spot.

Only low-tier data are queued up for this week, but these could still provide some clues on future BOJ action. Other than that, risk sentiment would likely be a major driver as usual. Read more.

AUD

Upbeat data from Australia and positive trade rhetoric lifted the higher-yielding Aussie for the most part of the week, even though the RBA cut rates.

There are a few medium-tier reports to watch out for from the Land Down Under this week, but trade talks might still dominate price action. Read more.

NZD

The Kiwi was off to a rough start with a couple of downbeat data points, but it managed to recover and pull off a net positive finish.

It’s another data-light week for New Zealand, which could leave the commodity currency more sensitive to overall sentiment and trade talks. Read more.

Charts to Watch:

EUR/CAD: 1-hour

EUR/CAD 1-hour Forex Chart
EUR/CAD 1-hour Forex Chart

Reversal alert! EUR/CAD failed in a couple of attempts to break below the 1.4400 major psychological mark and found resistance at 1.4700, creating a double bottom on its 1-hour chart.

Price has yet to break past the neckline to confirm that an uptrend is in the works, but this could last by around 300 pips or the same height as the formation if it happens. Stochastic is already turning lower after a brief stay in the overbought zone, suggesting that sellers might return.

GBP/JPY: 4-hour

GBP/JPY 4-hour Forex Chart
GBP/JPY 4-hour Forex Chart

Here’s one for the break-and-retest traders out there! Guppy recently busted through the neckline of its double bottom to signal that an uptrend is due. However, price is in the middle of a correction that could draw more bulls in the game.

Applying the handy-dandy Fib tool shows that the broken neckline resistance lines up with the 61.8% Fibonacci retracement level near the 130.00 handle. Stochastic is already pulling up, though, so buyers might be eager to return at this 50% level already.

GBP/CAD: Daily

GBP/CAD Daily Forex Chart
GBP/CAD Daily Forex Chart

This pair seems to have found resistance at the broken support zone around the 1.6600 area, setting its sights on the next downside targets marked by the Fib extension tool.

Declines might be limited to the 50% level, though, as this lines up with a long-term floor around 1.5600. Stochastic is also moving north from the oversold region, so GBP/CAD might follow suit as buyers regain the upper hand.