Start your trading prep with an overview of catalysts lined up next. I’ve got chart setups to check out this week, too!
The previous week had plenty of risk-off flows, particularly towards the end as geopolitical tensions flared once more.
Take a look at how the majors performed recently and the upcoming catalysts to watch out for:
Major FX Pairs Overview
The dollar had a rough ride last week as it finished net negative even with the pick up in safe-haven flows.
All eyes and ears might be on the NFP report coming up later on as weekly jobless claims have been posting jaw-dropping results. Read more.
So much for the pickup in crude oil prices! The Canadian dollar was driven mostly by risk aversion stemming from resurfacing geopolitical risks.
Canada’s jobs report is also up for release this week and could give traders a clue what the BOC might do next. Read more.
EUR & CHF
The shared currency managed to shrug off weak euro zone data and a dovish ECB statement as it took advantage of risk-off flows.
There’s not much in the way of top-tier releases from the region this week, so the franc and euro could keep taking cues from market sentiment. Read more.
Sterling had a positive run for the most part of the week but it gave up some of its winnings as risk aversion returned later on.
The BOE policy decision and MPC minutes are on this week’s docket, likely resulting to more volatility for sterling pairs. Read more.
The yen had a mixed performance as it struggled to take advantage of safe-haven flows while Japanese data turned out disappointing.
There are no major catalysts due from the Japanese economy next, so risk sentiment could remain the main driving force of yen pairs. Read more.
The Aussie was off to a positive start, but it failed to finish strong as safe-haven flows weighed on higher-yielding currencies later on.
The RBA decision is coming up this week, but no major changes to interest rates or policy outlook are expected for now. Better keep tabs on the spat between the U.S. and China, though! Read more.
The Kiwi’s performance was as mixed as a bag of nuts as it was pushed around by sentiment and economic data from New Zealand.
The quarterly jobs report is coming up soon, and traders are expecting to see a 0.2% decline in employment. Other than that, risk appetite could keep pushing NZD pairs around. Read more.
Forex Charts to Watch:
Reversal alert!USD/CAD failed in its last couple of attempts to break below the 1.3900 handle, creating a double bottom pattern on its 4-hour time frame.
Price has yet to break past the neckline resistance at 1.4275 to confirm that an uptrend is in order. If that happens, the climb could last by the same height as the chart formation.
Bears might still have the upper hand, though, as stochastic is indicating overbought conditions and the 100 SMA is below the 200 SMA.
USD/CHF is trading sideways, finding support around the .9400 major psychological mark and resistance near .9800.Price just bounced off the bottom of the range and might be setting its sights back on the top. Stochastic is on the move up, so price could follow suit as bullish pressure is in play.
However, the 100 SMA just crossed below the 200 SMA to signal that the path of least resistance is to the downside. In other words, support is more likely to break than to hold, possibly sending the pair lower by the same height as the chart formation.
Looking to go with the flow?NZD/USD has formed higher lows and higher highs to create a rising channel on its 1-hour time frame. The pair already bounced off the resistance and has busted through the mid-channel area of interest, paving the way for a drop to support.
The 100 SMA is still above the 200 SMA, though, so the uptrend is more likely to resume than to reverse. Buyers might be waiting at the channel bottom near the .6000 major psychological handle.
Stochastic is already indicating oversold conditions or exhaustion among sellers, so buyers could just be waiting to take over soon.