Major Currencies Overview
First up, here’s a rundown of how the major pairs performed in the past week:
It was another mixed one for the Greenback as the U.S. currency was extra sensitive to headlines related to trade talks. Still, it managed to chalk up some gains towards the end of the week, thanks to upbeat medium-tier figures.
It’s gonna be a shortened trading week for U.S. traders as Thanksgiving holidays are coming up, but there will still be a bunch of data points due before then. Read more.
Traders showed no love for the Loonie this week, even though crude oil pulled off a mid-week rebound and economic figures turned out slightly better than expected.
Only Canada’s current account balance and monthly GDP are due next, so it could be a light one for the Loonie unless risk sentiment makes huge swings. Read more.
EUR & CHF
Both currencies were having a mixed run for the most part of the week, but the shared currency fell behind towards the end as economic reports disappointed again.
The euro zone has its flash CPI readings coming up while the Swiss economy has a handful of low-tier reports to look forward to. Read more.
Sterling had a lot to contend with as it tossed and turned to Brexit-related proposals, mostly downbeat data, and overall market sentiment. Still, it ended the week in the red against most of its peers.
There are no major reports coming up from the U.K. economy this week, which leaves traders to pay closer attention to opinion polls leading up to the December general elections. Read more.
The lower-yielding yen drew some support as risk aversion was in play for the most part of the week on account of trade-related uncertainty.
Several reports are due from Japan this time, including CPI and retail sales, plus a bunch of other low-tier releases. Read more.
The Aussie was bogged down mostly by uncertainty surrounding U.S.-China trade talks, along with downbeat economic data from the Land Down Under. That didn’t stop the currency from logging in some gains versus the franc, pound, and Loonie though!
Next up, testimonies from RBA officials are worth keeping tabs on this week, along with Chinese PMI readings due later on. Read more.
The Kiwi managed to close out as a net winner, even as risk aversion dampened demand for higher-yielding currencies. Upbeat PPI, dairy prices, and credit card spending figures gave it a boost.
Quarterly retail sales, trade balance, and business confidence figures are on this week’s lineup, which could mean more volatility than usual. Read more.
Charts to Watch:
This pair has formed lower highs and lower lows to create a descending channel on its 1-hour time frame. Price bounced off the channel bottom and is pulling up to the mid-channel area of interest.
Applying the Fibonacci retracement tool on the latest swing high and low shows that the 38.2% level is just close by while the 61.8% level lines up with the channel top and 100 SMA dynamic inflection point.
However, this moving average is still above the 200 SMA to indicate that resistance is more likely to break than to hold. Stochastic is also on the move up to show that bullish pressure is in play.
This euro pair is trending higher above a newly-forming rising trend line on its 1-hour time frame and looks prime for another test of support. This coincides with the 61.8% Fibonacci retracement level that’s near the 200 SMA dynamic inflection point.
Stochastic is already turning higher as it dips in the oversold region, indicating that buyers are ready to return. In that case, EUR/CAD could bounce right back up to the swing high at 1.4772 or higher.
Nope, you ain’t seeing double! Here’s another trend-following Loonie setup against the pound this time. Price is also pulling back to its rising trend line on the short-term time frame, and this support zone lines up with a Fib and area of interest.
Stochastic is already on the move up to show that bullish momentum is picking up and that the current levels might be enough to keep losses in check. The 100 SMA is also above the 200 SMA to confirm that the uptrend is more likely to resume than to reverse.