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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!

Risk aversion was in play for the most part of the previous week as traders turned their attention to tensions between the U.S. and China, as well as the possibility of a “second wave” of the pandemic.

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

Major FX Pairs Overview

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

USD

Weak data? No problem! The Greenback left its forex rivals eating dust as it capitalized on safe-haven flows throughout the week.

The FOMC minutes might steal the show this time, along with a speech by Fed head Powell. Leading indicators such as the Philly Fed index and Markit PMI readings are also worth watching. Read more.

CAD

The Loonie shrugged off the rally in crude oil prices as it was bogged down by risk aversion for the most part of the week.

Canada’s CPI and retail sales figures are all up for release next, and downbeat results are eyed. Read more.

EUR & CHF

The euro and franc were able to bank on risk-off flows in the previous week, as geopolitical risks and pandemic fears were in play.

The focus could shift to the PMI readings coming up from the eurozone, along with the ECB meeting minutes. Other than that, market sentiment could still push these European currencies around. Read more.

GBP

Sterling found itself near the bottom of the forex pile, as Brexit troubles resurfaced and risk-off flows from geopolitical tensions contributed to bearish vibes.

A number of top-tier economic figures are coming up from the U.K. economy next, including jobs data, inflation figures, and PMI readings. Read more.

JPY

The safe-haven yen took advantage of risk aversion stemming from tensions between the U.S. and China, as well as fears of a “second wave” of the COVID-19 pandemic.

There are no major reports due from the Japanese economy this week, which could leave yen pairs sensitive to market sentiment. Read more.

AUD

With another round of tensions coming from China, the Aussie ended up on the losing end last week while risk-off flows dominated.

The RBA minutes and a speech by Governor Lowe are worth watching this week, but don’t forget to keep tabs on changes in market sentiment as well! Read more.

NZD

The Kiwi was the biggest loser for the week, dragged down by a dovish RBNZ statement and overall risk aversion.

New Zealand’s retail sales report could spark some volatility for Kiwi pairs midweek, but market sentiment might still play a bigger role. Read more.

Forex Charts to Watch:

EUR/NZD: 4-hour

EUR/NZD 1-hour Forex Chart
EUR/NZD 4-hour Forex Chart

Reversal alert!

EUR/NZD failed in its last couple of attempts to break below the 1.7600 area, creating a double bottom on its 4-hour chart. Price is already testing the neckline resistance at 1.8200, and a break higher could confirm an uptrend.

Be careful when jumping in a long position, though, as the 100 SMA is still below the 200 SMA to hint that there’s a chance for the selloff to resume.

Also, Stochastic is indicating overbought conditions and looks ready to turn south. Price could follow suit as selling pressure takes over, possibly even taking the pair back to the lows.

AUD/NZD: Daily

AUD/NZD Daily Forex Chart
AUD/NZD Daily Forex Chart

Here’s another potential reversal play for y’all!

AUD/NZD broke above the top of its descending channel on the daily time frame, indicating that the long-term trend is about to turn.

Bears might still have some energy left as the 100 SMA is below the 200 SMA to reflect the presence of bearish momentum. Meanwhile stochastic is hovering close to the overbought zone to signal exhaustion among buyers.

Then again, these technical indicators might simply be hinting at a quick pullback to the broken channel top before the pair heads further north.

EUR/AUD: 1-hour

EUR/AUD 1-hour Forex Chart
EUR/AUD 1-hour Forex Chart

Not a fan of breakouts? You might like this simple pullback play instead!

EUR/AUD has formed higher lows and higher highs to trend inside a rising channel on its 1-hour chart. Price is testing the resistance and could be ready for a pullback to support.

Stochastic is reflecting overbought conditions, so bears might take over in the meantime. However, the 100 SMA just crossed above the 200 SMA to suggest that support levels are more likely to hold than to break.

The handy-dandy Fib retracement tool shows where more buyers might be waiting, with the 61.8% level close to the channel bottom at 1.6770 and the 38.2% Fib just around the mid-channel area of interest.