Major Currencies Overview
First up, here’s a rundown of how the major pairs performed in the past week:
USD
It’s NFP week once again! With that, the focus throughout the week could shift away from sentiment to leading jobs indicators ahead of the main employment report. Read more.
CAD
Canada is also scheduled to release its jobs report at the end of the week and another round of strong gains could douse BOC rate cut expectations. Read more.
EUR & CHF
There’s not much in the way of top-tier reports from both the euro zone and the franc, save for flash CPI readings and SNB foreign currency reserves. With that, risk sentiment could still be a big factor for these lower-yielding currencies. Read more.
GBP
The only economic reports due from the U.K. are the final manufacturing and services PMI readings from Markit, but the BOE Monetary Policy Report hearings might also be worth watching. Read more.
JPY
The coast is clear in terms of major economic reports from Japan this week, which could leave yen pairs extra sensitive to overall risk sentiment and counter currency price action.Read more.
AUD
It could be an exciting trading week for Aussie pairs as the RBA decision is coming up and a bunch of other top-tier catalysts, including the GDP and trade balance, are due. Read more.
NZD
There are no major reports due from New Zealand this week, which could allow the Kiwi to take cues from the Aussie or major changes in market sentiment. Read more.
Charts to Watch:
EUR/GBP: Daily
First up is this potential reversal play on the daily time frame of EUR/GBP. The pair formed a double bottom pattern to signal that a long-term rally might be underway now that the neckline is broken.
However, the 100 SMA is safely below the 200 SMA to hint that the downtrend is more likely to resume than to reverse. The pair is breaking above the 100 SMA dynamic inflection point, though, so buyers could be gaining strength.
Stochastic is still pointing up but dipping into the overbought region to reflect exhaustion among buyers. Turning lower could draw selling pressure back in and push the pair back to the bottoms.
GBP/USD: 1-hour
Next up is this simple trend setup on the 1-hour chart of Cable. Price is bouncing off support and looks prime for a pullback to the top.
Applying the Fibonacci retracement tool reveals that the 61.8% level lines up with the channel resistance and is also near the 1.2900 major psychological mark. This is also near the dynamic inflection points at the moving averages.
The 100 SMA is below the 200 SMA for now to indicate that resistance levels are more likely to hold than to break. However, stochastic is pulling up to signal that bullish momentum might return from here.
USD/CAD: 4-hour
Here’s another trend setup for y’all!
USD/CAD has formed higher lows to move above a rising trend line on its 4-hour chart. Price looks ready for a pullback to this support area, and the Fibs show where buyers might be waiting.In particular, the 61.8% level coincides with the trend line and an area of interest at the 1.3300 major psychological support. Stochastic is just starting to reflect a return in selling pressure, but the 100 SMA is above the 200 SMA to hint that the uptrend is likely to carry on.
