Major Currencies Overview
First up, here’s a rundown of how the major pairs performed in the past week:
The Greenback had a rough week as leading jobs indicators disappointed and fresh trade jitters popped up. It was able to recoup some losses when the NFP beat expectations, but the next round of U.S. tariffs and the upcoming FOMC decision might spur volatility. Read more.
Traders showed no love for the Loonie, despite crude oil rallies and another BOC decision to sit tight instead of easing. There are no major reports due from the Canadian economy, so the currency could take its cues from sentiment. Read more.
EUR & CHF
Sterling banked on a growing lead for Conservatives in election-related polls, but the currency gave up some ground as the gap narrowed later on. The general elections will take place on December 12, and a majority for the Tories could provide some relief. Read more.
It was an up and down week for the lower-yielding Japanese currency as risk sentiment tossed and turned. A handful of medium-tier reports are coming up next and these should provide some clues on future BOJ action. Read more.
The Aussie closed out as a net winner for the week as the RBA decided to keep interest rates on hold as expected. This time, price action could hinge mostly on how U.S.-China trade negotiations pan out and whether or not the U.S. pushes through with the next set of tariffs. Read more.
The Kiwi left most of its counterparts eating dust as it took advantage of risk-on flows and generally positive vibes for New Zealand’s economy. This time, risk sentiment based on trade updates could stay in the driver’s seat. Read more.
Charts to Watch:
This pair has been trending higher in the past weeks, forming higher lows connected by a rising trend line on its 1-hour chart. Another test of this support area might be underway as stochastic is pointing down.
Kiwi bulls might be waiting to charge at any of the Fib levels marked, with the 61.8% level being closest to the trend line and the 50% level coinciding with the 200 SMA dynamic inflection point. The 100 SMA is above the slower-moving MA to confirm that support areas are more likely to hold than to break.
This euro pair is still stuck in a range as it was in the previous week and is currently testing support. A bounce could take it back up to the range resistance around 1.6260 while stochastic is heading north to confirm the presence of bullish pressure.
The 100 SMA is below the 200 SMA, though, so the path of least resistance is to the downside. Also, the gap between the moving averages is widening to reflect increasing bearish momentum.
Here’s one for the swing traders out there! This pair had been trading inside a rising channel visible on its daily time frame for quite some time, but it just recently broke below support to signal that a reversal is due.
Stochastic is still pointing down to show that sellers have the upper hand, but the oscillator is already dipping into the oversold region to reflect exhaustion. Then again, the 100 SMA looks ready to cross below the 200 SMA to indicate that sellers are flexing their muscles.