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!
Risk appetite extended its stay in the markets as traders found relief in upbeat economic data and additional stimulus packages.
Take a look at how the majors performed recently and the upcoming catalysts to watch out for:
Major FX Pairs Overview
EUR & CHF
Sterling chalked up a net positive performance in the previous week, even though Brexit negotiations seemed to be going nowhere.
It was a tough one for the lower-yielding Japanese currency as risk appetite surged last week and data from Japan also turned out downbeat.
Positive global risk sentiment and the possibility that Australia could ease more lockdown restrictions lifted the Aussie’s spirits last week.
Upbeat data from China early on allowed the commodity currency to have a running start this week, and a couple of minor reports might give it more upside. Read more.
The Kiwi soared across the board as risk-taking was strongly in play and updates confirmed that New Zealand is nearly coronavirus-free.
There are no major catalysts from New Zealand this time, so a continuation of this upbeat sentiment might be enough to keep the Kiwi supported. Read more.
Forex Charts to Watch:
Bounce or break?
EUR/GBP has been pacing back and forth between support around the .8900 major psychological mark and resistance at the .9000 handle.
Price is currently testing the bottom of the range, still deciding whether to make another move back to the top or head further south.
A break below support could set off a slide that’s at least the same height as the range. However, Stochastic is suggesting that buyers could take over from here as oversold conditions are met.
Looking to go with the flow?GBP/AUD has formed lower highs and lower lows to cruise lower inside a descending channel on the 4-hour time frame. Price is currently testing support and might be due for a retracement to the top.
Stochastic is pulling out of the oversold region to signal a return in bullish pressure, possibly enough to take the pair up to the Fib retracement levels.
GBP/CAD: 1-hourcurrency pair is testing the top of the triangle around the 1.0750 minor psychological mark, and a break higher could indicate that more gains are in the works.
Stochastic is barely offering any strong clues, though, as the oscillator is on middle ground.
Meanwhile, the 100 SMA is above the 200 SMA to hint that resistance is more likely to break than to hold, possibly resulting in a climb that’s the same height as the triangle.