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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:

Major Pairs Price Performance from MarketMilk
Major Pairs Price Performance from MarketMilk

USD

The scrilla had another mixed one as it gave in to counter currency flows throughout the shortened trading week. This time, the upcoming NFP release could take over dollar price action, unless trade tensions remain front and center. Read more.

CAD

The Loonie turned out to be a net winner mostly due to positive risk sentiment throughout the week. The BOC is scheduled to make its monetary policy decision midweek, but no major changes are expected. Read more.

EUR & CHF

Both the euro and Swiss franc were net losers, falling victim to counter currency moves and risk appetite. There’s not much in the way of economic releases from both economies this week, so sentiment could still keep pushing the currencies around. Read more.

GBP

Sterling had a pretty good run as poll results in the previous week signaled a growing lead for the Conservatives, which would be good for PM Johnson’s Brexit plans. The lack of top-tier data this time could keep traders focused on these election-related polls. Read more.

JPY

The lower-yielding yen saw a lot of red in the previous week as traders were in the mood for more risk. Apart from consumer-related data this time, the yen could keep taking cues from overall sentiment in the days ahead. Read more.

AUD

Despite the pickup in risk appetite, the Aussie still found itself on weak footing as traders remained wary of trade developments between the U.S. and China. There are plenty of major catalysts lined up this week, including the RBA decision, GDP release, trade balance, and retail sales data. Read more.

NZD

The Kiwi logged in another week in the green as risk appetite favored higher-yielding currencies. The upcoming one is looking light in terms of data, but RBNZ head Orr’s speech might still bust out some moves. Read more.

Charts to Watch:

GBP/JPY: 4-hour

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

This pair has formed lower highs and higher lows to trade inside a triangle pattern on its 4-hour time frame. Price is currently testing the resistance while stochastic is pointing down to signal a potential return in selling pressure.

The moving averages aren’t giving very strong clues at the moment, but price remains above the indicators so these could keep holding as dynamic support levels.

EUR/AUD: 1-hour

EUR/AUD 1-hour Forex Chart
EUR/AUD 1-hour Forex Chart

This euro pair is pacing back and forth between support around 1.6215 and resistance at 1.6300. Price is currently at the middle of the range and testing support at the moving averages.

However, the 100 SMA is below the 200 SMA to indicate that support is more likely to break than to hold. At the same time, stochastic is heading lower to confirm that sellers have the upper hand.

GBP/CAD:

NZD/CAD Daily Forex Chart
NZD/CAD Daily Forex Chart

Here’s one for the swing traders out there! NZD/CAD is gaining bullish momentum off its bounce from the long-term channel bottom and could be setting its sights on the channel top.

However, the 100 SMA is still below the 200 SMA to indicate that the path of least resistance is to the downside or that the selloff is more likely to gain traction. Stochastic is also hanging around the overbought region to signal exhaustion among bulls.