Start your trading prep with a review of last week’s price action and an overview of catalysts coming up.
I’ve got chart setups to check out this week, too!
A bit of risk appetite stayed in the markets last time, but market players also seemed wary of rising geopolitical tensions.
Take a look at how the majors performed recently and the upcoming catalysts to watch out for:
Major FX Pairs Overview
Traders showed no love for the Greenback as U.S. tensions with China flared and Uncle Sam also printed mostly downbeat data.
It’s the first week of a brand new month, which means that the highly-anticipated non-farm payrolls report is coming up! Leading indicators should also give some clues on how the jobs release might turn out. Read more.
The Loonie was mostly in the green for the past week thanks to upbeat BOC comments and a round of risk-taking.
EUR & CHF
The euro managed to score some gains when the EU announced its recovery plan while the franc took some hits on hints of SNB intervention.
The ECB policy decision is coming up next and an increase in stimulus is eyed. Meanwhile, the SNB foreign currency reserves report due later in the week could confirm if the central bank is making some moves. Read more.
Sterling had another one of its mixed weeks as it reacted to counter currency flows and Brexit-related updates.
The safe-haven yen was the biggest loser last week as risk-on flows came in play and the BOJ signaled scope for further easing.
There are no major reports coming out of Japan in the days ahead, which suggests that the currency could keep taking cues from market sentiment. Read more.
The Aussie found itself at the top of the forex pile as risk appetite surged, even though tensions between the U.S. and China were still in play.
There are no major catalysts from New Zealand this time, so the Kiwi’s reign could depend on whether or not risk appetite extends its stay. Read more.
Forex Charts to Watch:
Heads up, Loonie bulls!
If the 38.2% Fib and the 100 SMA dynamic support are enough to keep losses in check, a move back to the channel top could follow. The 100 SMA is safely above the 200 SMA to confirm that bullish momentum is in play.
A larger correction, on the other hand, could still see a test of the channel bottom near the 61.8% Fib while Stochastic points down from the overbought zone.
Buyers might also be waiting around the 50% level that lines up with the 200 SMA dynamic support and the 77.50 minor psychological handle.
Here’s another retracement play for y’all!GBP/NZD has formed lower highs and lower lows to trend inside a falling channel on the 4-hour time frame. Price is currently testing support and might be due for a pullback to the top.
Stochastic just pulled out of the oversold region to signal a return in bullish pressure, possibly enough to take the pair up to the Fib retracement levels.
The 50% to 61.8% Fibs span an area of interest or former support that could hold as resistance, which is right around the channel top as well.
Bounce or break?AUD/CAD is closing in on the top of the rising channel on its 1-hour chart, still deciding whether to head further north or retreat back to nearby support levels.
A bullish candle closing above the .9250 area could be enough to confirm that a steeper climb is underway while a reversal candlestick at the top could send the pair lower.
Stochastic is hovering close to the overbought zone and looks ready to move south, so the price could follow suit. The 100 SMA is still above the 200 SMA, though, so there’s a slight chance that the ceiling could be broken.