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Start your trading prep with an overview of catalysts lined up next. I’ve got chart setups to check out this week, too!

As in the previous weeks, it’s been mostly about COVID-19 updates, as well as efforts to shield the global economy from the impact of the outbreak.

ICYMI, here’s what policymakers have done for their economies since the coronavirus pandemic hit.

FX Week Ahead

Major Currencies Overview

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

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


The Greenback had a mixed run last week but closed mostly positive against its peers, even though risk appetite came back in play.

Business-related data, such as PMI readings and durable goods orders, are lined up next and could have a strong impact on dollar price action. Still, better keep your eyes and ears peeled for more stimulus buzz! Read more.


Another leg lower for crude oil prices dragged the correlated Canadian dollar with it, plus the BOC rate cut and disappointing data added downside pressure.

Only the Canadian CPI is on this week’s economic schedule, which could leave the Loonie extra sensitive to overall sentiment and crude oil price action. Read more.


The euro closed mostly in the red as ECB officials sounded pessimistic and counter currency flows took over.

The spotlight could turn to economic data this week as PMI readings are due, but these might simply contribute to more bearish vibes for the shared currency. Read more.


Sterling chalked up a mixed performance since there wasn’t much data to work with and the currency simply reacted to its counterparts’ movements.

This week could be different as a handful of top-tier figures are lined up, including jobs and inflation reports. Read more.


The safe-haven yen outperformed its rivals for yet another week as it took advantage of risk-off flows and a bit of dollar weakness.

A number of low-tier reports are on Japan’s schedule, but this might not be enough to pry the Japanese currency away from risk-related movements. Read more.


Weak data? No problem! The Aussie managed to score some positive flows off risk rallies and an upbeat jobs report from the Land Down Under.

Only the RBA minutes and flash PMIs are due from Australia this week, which leaves the Aussie free to react mostly to overall market sentiment. Read more.


The Kiwi reeled upon hearing negative government commentary on the coronavirus situation in the country, preventing it from taking advantage of risk rallies.

Kiwi bulls took comfort from the upbeat quarterly CPI released early this week, but risk sentiment might determine if the currency can stay afloat. Read more.

Forex Charts to Watch:

USD/CAD: 4-hour

USD/CAD 1-hour Forex Chart
USD/CAD 4-hour Forex Chart

Who’s up for a pullback?

USD/CAD broke out of that falling wedge pattern we were watching last week and is now in the middle of a correction to the broken resistance.

Applying the Fibonacci retracement tool shows that the 61.8% level is closest to the broken wedge top, which might hold as support. It’s also near the 1.4000 major psychological support where more buyers might be hoping to jump in.

The 100 SMA is still above the 200 SMA to suggest that support is more likely to hold than to break while stochastic just reached the oversold region to show that sellers are tired.

USD/CHF: 4-hour

USD/CHF 1-hour Forex Chart
USD/CHF 4-hour Forex Chart

If you’re in the mood for a breakout play, then this setup on USD/CHF might be worth keeping close tabs on this week. Price is consolidating inside a symmetrical triangle, still deciding whether to break higher or lower.

The 100 SMA is above the 200 SMA to hint that an upside breakout might be more likely, but stochastic is pointing south to suggest otherwise. Better wait for confirmation, so you won’t get caught up in a fake out!

In any case, a move in either direction could last by the same height as the triangle formation, which goes from around .9400 to .9850 or 450 pips.

GBP/NZD: 1-hour

GBP/NZD 1-hour Forex Chart
GBP/NZD 1-hour Forex Chart

Reversal alert! GBP/NZD failed in its last couple of attempts to break above the 2.0950 area, creating a double top pattern on its 1-hour chart. Price still has a bit of room to go before testing the neckline, though.

A break below this support area could set off a drop that’s around the same size as the chart formation. However, the 100 SMA is above the 200 SMA to signal that buyers are in control.

Stochastic is also pulling up from the oversold region to indicate that bullish momentum is about to pick up from here, possibly sending the pair back to its tops.