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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 appetite returned in the previous week as market players seemed hopeful that coronavirus vaccine trials could see more progress and that global quarantine measures could be eased.

Tensions between the U.S. and China remained in play, though, especially since signs of conflict are brewing in Hong Kong again.

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

The Greenback was hit by a double-whammy of downbeat U.S. data and returning risk appetite, closing in the red except against the yen.

A handful of mid-tier reports like durable goods orders and the preliminary GDP is due next, along with a speech by Fed head Powell. Read more.

CAD

‘Twas a mixed performance for Loonie pairs recently as the Canadian currency took cues from crude oil price action and overall sentiment.

BOC Governor Poloz has a couple of speeches lined up early in the week, then Canada’s monthly GDP will be released much later on. Read more.

EUR & CHF

Both European currencies returned some gains as data has been disappointing and risk sentiment favored higher-yielders.

There’s not much in the way of top-tier catalysts from both the eurozone and Swiss economy, although Lagarde’s speech might be worth watching. Read more.

GBP

Sterling had another mixed run as it reacted mostly to counter currency flows, advancing versus the safe-havens while retreating to commodity currencies.

There are no major U.K. reports on this week’s schedule, so pound traders might take cues from Brexit-related updates and market sentiment. Read more.

JPY

The lower-yielding yen had a rough week as it finished dead last against its forex rivals on account of risk-taking.

There are also no reports coming out of Japan this time, likely leaving the yen sensitive to overall market sentiment. Read more.

AUD

Aussie bulls came out to charge last week as risk-taking was strong enough for traders to shrug off fresh tensions between the U.S. and China.

Australia’s quarterly private capital expenditure is the only major release for the week, so market sentiment might still be a big driver. Read more.

NZD

The higher-yielding Kiwi took the top spot as it was able to take advantage of risk-taking and got an extra boost from a relatively upbeat RBNZ.

The RBNZ Financial Stability Report is due next, and another round of optimistic views could continue to boost the commodity currency. Read more.

Forex Charts to Watch:

AUD/JPY: 1-hour

AUD/JPY 1-hour Forex Chart
AUD/JPY 1-hour Forex Chart

This pair has formed higher lows and higher highs to trend higher inside an ascending channel on its short-term chart.

Price is in the middle of a correction, possibly to draw more bullish energy, and the Fib levels show where buyers are waiting.

The 61.8% Fib is close to the channel support around the 69.50 minor psychological mark while the 38.2% level already seems to be keeping losses in check at the mid-channel area of interest.

The 100 SMA is safely above the 200 SMA to confirm that bullish momentum is still present, but Stochastic is already closing in on the overbought zone to reflect exhaustion among buyers.

Turning lower could mean a deeper correction is in order for AUD/JPY.

CAD/JPY: 1-hour

CAD/JPY 1-hour Forex Chart
CAD/JPY 1-hour Forex Chart

Here’s another retracement play for y’all!

CAD/JPY is also trending higher inside a rising channel on the 1-hour time frame and already seems to be bouncing off the bottom.

Loonie bulls could take over from here and take the pair up to the next upside targets marked by the Fibonacci extension tool. The 50% level is at the 77.50 minor psychological mark around the middle of the channel while the full extension is closer to the channel resistance.

Be mindful of stochastic already indicating overbought conditions, though, as exhaustion among buyers could give room for sellers to take over and go for a reversal. Still, the 100 SMA is above the 200 SMA to suggest that bullish pressure is present.

USD/CHF: 1-hour

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

Not a fan of corrections? You might like this potential breakout setup instead!

USD/CHF is consolidating inside a symmetrical triangle with its lower highs and higher lows. The pair is currently hanging around the triangle resistance, still deciding whether to make a bounce or a break.

A bullish candle closing above the triangle top around .9735 could be followed by a rally that’s at least the same height as the chart pattern. On the other hand, a bounce could take price back down to the triangle bottom around .9650.

Note that technical indicators such as the moving averages and stochastic pointing lower suggest that a selloff may be in order. Stay on the lookout for a break below support also, as this might spur a drop of the same size as the triangle!