Major Currencies Overview
USD
It’s gonna be a big week for the scrilla, with the FOMC decision coming up and the NFP report up for release as well. Another 0.25% rate cut is expected while weaker jobs figures are eyed. Read more.
CAD
The Loonie will likely have its share of volatility early in the week as the BOC gears up to make its monetary policy decision. Will they still sit on their hands this time? Read more.
EUR & CHF
Only medium-tier reports are lined up from the euro zone while the franc might catch some moves during SNB head Jordan’s testimony. Apart from that, good ol’ risk sentiment might push these currencies around this week. Read more.
GBP
Brexit D-day is coming up! Or will an extension be granted before the official breakup date? All eyes and ears are on the Parliament vote for snap elections. Read more.
JPY
The BOJ could steal the show during the latter part of the week as it makes its interest rate decision then. There has been some talk of further easing for quite some time, but will officials finally pull the trigger? Read more.
AUD
The Aussie has been taking cues from risk appetite for quite some time, but it could have a bit more going on this week as the quarterly CPI is due and China will also be releasing PMI figures. Read more.
NZD
There are no major reports lined up from the Kiwi this week, but that doesn’t mean we’re in for a dull one! Keep in mind that there are plenty of factors that could push market sentiment around, so the higher-yielding currency could be in for big moves. Read more.
Charts to Watch:
EUR/USD: Daily
EUR/USD looks ready to resume its long-term slide as price bounced off the top of its descending channel on the daily time frame. Stochastic is turning lower from the overbought zone as well, confirming that bears are back in action.
The Fibonacci extension tool shows the next potential downside targets, with the 38.2% level coinciding with the mid-channel area of interest and the 50% extension lining up with the swing low. The 61.8% level is closer to the channel bottom around the 1.0850 minor psychological support.
GBP/CAD: 4-hour
Anyone up for a break-and-retest setup? GBP/CAD recently busted through resistance around the 1.6600-1.6700 levels before zooming up close to 1.7100.
Price is in the middle of a correction, though, and is currently testing support at the 38.2% Fib. Stochastic is already indicating oversold conditions but has yet to pull up to show that buyers are ready to defend the floor. A larger pullback could last until the area of interest, which happens to be spanned by the 50% to 61.8% levels.
AUD/CAD: 1-hour
Bounce or break? AUD/CAD is testing the bottom of its ascending triangle pattern visible on the 1-hour time frame, and stochastic is suggesting that a move back to the top at .9020 might follow.
A break below support around .8900, on the other hand, could be followed by a drop of the same size as the chart formation. This triangle spans around .8850 to .9020, so a 170-pip selloff could be in the works in a breakdown.
