Major Currencies Overview
The dollar was dragged lower as the FOMC decided to cut interest rates as expected and was unable to pull up even after the NFP beat estimates.
There’s not much in the way of top-tier events for the dollar this week, except maybe for some speeches by FOMC members, so risk sentiment could push the currency around. Read more.
The Loonie found itself in the red as the BOC finally shifted to a more dovish stance, even as they refrained from cutting rates for now.
Canada is due to print its jobs data later in the week, and a reading below the earlier 53.7K increase could convince more traders that the BOC might ease soon. Read more.
EUR & CHF
Both currencies turned in a mixed performance as the lack of top-tier data left them extra sensitive to counter currency price action.
Up ahead, the euro has ECB head Lagarde’s speech and updated EU economic forecasts to contend with while the franc could encounter volatility during the release of SNB’s foreign currency reserves data. Read more.
Sterling edged higher against some of its peers as the Brexit date was pushed a few months later, but it still remained heavy against the rest while the prospect of a “no deal” outcome remained.
BOE Super Thursday is coming up this week, and pound traders would like to know what the central bank has in mind for monetary policy now that the U.K. can stay in the EU for a bit longer. Read more.
The yen had a tough week as it was clobbered after the dovish BOJ statement and also gave up ground to risk-taking.
There’s not much in the way of top-tier data from Japan other than consumer-related reports, so the yen might keep taking cues from market sentiment. Read more.
The Aussie found itself at the top spot at the end of the week, thanks mostly to strengthening market risk appetite.
This week, the RBA statement is coming up, along with the release of Australia’s trade balance. Oh, and China is set to make a big data dump, too. Read more.
The Kiwi also had a positive run and was tied with the Aussie in last week’s rankings as risk appetite picked up.
The main event for the currency this week is the release of New Zealand’s quarterly jobs figures, but market sentiment would likely cause some waves here and there. Read more.
Charts to Watch:
Big breakout alert! AUD/USD recently broke above the neckline of its double bottom reversal pattern and is also busting through the long-term descending trend line on its daily chart.
This suggests that an uptrend may be in order, but stochastic is hinting that a quick pullback might come first. In that case, the pair could retest the broken trend line, which might hold as support around the .6850 mark.
Continuation or correction? Guppy has been on a tear but is stuck in consolidation around the 140.00 major psychological mark. This could either be a bullish flag pattern or an indication that a retracement might follow.
Applying the Fib tool shows that the 61.8% level is closest to the rising trend line while the 50% level coincides with a former resistance area. Stochastic seems to be hinting that buyers are taking over.
Here’s another potential reversal setup for y’all! USD/CHF appears to be done with its climb as it forms a head and shoulders pattern and attempts to break below the neckline at .9850.
However, stochastic has been indicating oversold conditions for quite some time and looks ready to pull up, suggesting that buyers could take control. If so, price might make another bounce to the nearby area of interest at .9900-.9950.