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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

First up, here’s a rundown of how the major pairs performed in the past week:

Forex Major Pairs Performance from MarketMilk
Forex Major Pairs Performance from MarketMilk

USD

The main events to watch out for when trading the Greenback this week include the release of the FOMC meeting minutes and flash PMI figures from Markit during the latter half of the week. Read more.

CAD

Canada has its CPI and retail sales figures coming up, and these could provide clues on whether or not the BOC could finally be pushed to cut interest rates like its peers soon. Read more.

EUR & CHF

It might be a slow start for the euro this week, but the action could pick up as the flash PMI readings for November are released on Friday. There are no major reports due from Switzerland, so franc pairs could take cues from sentiment. Read more.

GBP

There’s not much in the way of top-tier data from the U.K. economy this week, which would likely leave pound traders more sensitive to Brexit-related updates, particularly from opinion polls. Read more.

JPY

A few medium-tier reports like the national and Tokyo core CPI, as well as the Markit flash manufacturing PMI, might be worth keeping tabs on when trading yen pairs this week. Read more.

AUD

The RBA minutes are up for release early this week, but not many expect this release to be a big mover for Aussie pairs. Instead, market sentiment stemming from geopolitical risks might still be the main driving factor. Read more.

NZD

Quarterly PPI reports are up for release from New Zealand, and these could provide clues on how overall inflation might turn out. Small dips are expected for Q3, which could ramp up RBNZ rate cut forecasts. Read more.

Charts to Watch:

AUD/USD: Daily

AUD/USD 1-hour Forex Chart
AUD/USD 1-hour Forex Chart

Still in retest mode or resuming the slide? Happy Pip is watching this potential long-term AUD/USD reversal closely to see if the Fibs would be enough to keep losses at bay.

Price seems to have bounced off the 61.8% level, which might be the line in the sand for a retest, and a move back above the .6800 area of interest could confirm that bulls are charging again. Stochastic still has some room to head south before reflecting oversold conditions, though.

USD/JPY: 4-hour

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

It looks like this rising wedge on the 4-hour time frame of USD/JPY we were watching last week is still holdin’ like a boss! Price is now bouncing off the wedge support and might be due for a move to the top as stochastic heads north.

The 100 SMA is also above the 200 SMA to confirm that the path of least resistance is to the upside or that support is more likely to hold than to break. Still, a move below the wedge bottom could set off a drop that’s the same height as the formation.

USD/CAD: 1-hour

USD/CAD 1-hour Forex Chart
USD/CAD 1-hour Forex Chart

Here’s one for the short-term traders out there! USD/CAD seems to be starting a new uptrend as it forms a rising trend line on the 1-hour time frame.

Stochastic is already indicating oversold conditions to suggest that buyers might return from here. At the same time, the 100 SMA is above the 200 SMA to confirm that the uptrend is more likely to carry on than to reverse.