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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!

A bit of risk appetite returned to the markets throughout the previous week as traders focused on easing lockdown restrictions in several economies.

Take a look at how the majors performed recently and the upcoming catalysts to watch out for:

Major FX Pairs Overview

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

USD

The dollar had a mixed run as it gave up most of its winnings when risk-taking returned. The U.S. currency barely reacted to downbeat jobs data as traders knew what to expect.

Inflation and consumer spending reports are up for release this week, so more volatility could be in the cards for dollar pairs. Read more.

CAD

Weak data? No problem! The Loonie managed to pocket several gains as it tracked crude oil rallies and took advantage of risk appetite.

The BOC Financial System Review is coming up, followed by a speech by head honcho Poloz, but do keep tabs on oil price action still! Read more.

EUR & CHF

Both lower-yielding European currencies gave up ground in the previous week as risk-on flows and weak data got the best of ’em.

There’s not much in the way of major reports from the euro zone and Switzerland this time, so overall market sentiment might still push their currencies around. Read more.

GBP

Sterling found itself in the red as a combination of weak U.K. data and no-deal Brexit fears dragged the currency south.

The U.K. GDP for the first quarter of the year is up for release, and BOE head Bailey’s speech might be worth watching, too. Read more.

JPY

Japanese banks were closed for holidays for the most part of the week, so the yen was pushed around by counter currency action.

There are no major catalysts lined up from the Japanese economy this time, which could leave yen pairs sensitive to market sentiment. Read more.

AUD

The Aussie took the top spot thanks to upbeat data from the Land Down Under and a surge in risk appetite later in the week.

Australia’s jobs figures are coming up next and these are expected to show the impact of the pandemic on the economy. Do keep tabs on Chinese data later in the week, too! Read more.

NZD

The Kiwi took second place to its buddy the Aussie as risk appetite and positive data also buoyed the higher-yielding currency up.

The RBNZ will announce its monetary policy decision early in the week but no major changes are eyed. Read more.

Forex Charts to Watch:

USD/JPY: 1-hour

USD/JPY 1-hour Forex Chart
USD/JPY 1-hour Forex Chart

Bounce or break?

USD/JPY is trending lower on its 1-hour chart as price formed lower highs and lower lows inside a falling channel. The pair is currently testing the resistance and could be due for a drop back to the swing low or the bottom of the channel.

The 100 SMA is below the 200 SMA to indicate that the path of least resistance is to the downside or that resistance is more likely to hold than to break. Stochastic has some room to climb but is already approaching overbought levels to reflect exhaustion among buyers.

Just be on the lookout for a candle closing above the 61.8% Fib level, which might be the line in the sand for a correction. An upside break could mark the start of a reversal for this one!

NZD/JPY: 1-hour

NZD/JPY 1-hour Forex Chart
NZD/JPY 1-hour Forex Chart

This pair is trading sideways, finding support at the 63.85 mark and resistance at the 66.00 major psychological handle.

Price is on the move up and might be ready to test the top of the range soon. Bears could be waiting right there as stochastic is already in the overbought zone to suggest that bulls could use a break.

Moving averages are barely offering any good clues at the moment since the indicators are just oscillating to reflect range-bound action. Still, if the resistance holds, another move back to the range bottom may be in order.

GBP/JPY: 1-hour

GBP/JPY 1-hour Forex Chart
GBP/JPY 1-hour Forex Chart

Here’s a classic break-and-retest setup for y’all!

GBP/JPY recently fell through support around the 133.00 major psychological mark then dipped to a low of 130.66 before pulling back up.

The handy-dandy Fib tool shows that the broken support lines up with the 38.2% level, which might be enough to keep gains in check. If so, the pair could resume the slide back to the swing low or lower.

A higher pullback could test the 50% Fib closer to 133.00 or the 61.8% level at 133.62. The 100 SMA is below the 200 SMA while stochastic looks ready to move south, so a pickup in bearish pressure might follow.