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!
Take a look at how the majors performed recently and the upcoming catalysts to watch out for:
Major FX Pairs Overview
The scrilla had a mostly positive run as it took advantage of the cautious mood in the markets, only chalking up losses to its lower-yielding rivals.
Canada’s CPI and retail sales reports are up for release next, and mostly downbeat results are eyed for consumer spending data. Read more.
EUR & CHF
Both lower-yielding European currencies managed to chalk up gains as demand for safe-havens picked up while market watchers continued to fret about the pandemic.
After a positive start, sterling returned most of its gains throughout the week as market sentiment had a huge shift later on.
The safe-haven yen bagged the top spot as risk aversion came strongly in play when the market focus returned to the worsening pandemic.
Risk-off flows dragged the Aussie to the bottom of the forex pile as traders sobered up on their global economic outlook.
China has a huge data dump coming up while the Land Down Under has its jobs report to watch out for. Read more.
The higher-yielding Kiwi also found itself down in the dumps as risk aversion was in play during the latter half of the previous week.
Forex Charts to Watch:
EUR/GBP bounced off that range support we were watching last week and is now back up to the top! Think it’ll still hold?
If it does, sellers could take the pair back down to the bottom of the range or at least until the area of interest around the moving averages. However, the 100 SMA just crossed above the 200 SMA to suggest the possibility of an upside break.
It’s a break-and-retest setup yo!NZD/JPY recently busted through resistance at the 66.50 area and zoomed up to the 71.70 level before turning back down. A correction from the climb seems to be taking place, and buyers might just be waiting to enter at the Fibs.
The 38.2% level seems to be holding as support for now, especially since it lines up with the 100 SMA dynamic inflection point. This moving average is above the slower-moving 200 SMA to confirm that the uptrend is likely to resume.
Stochastic is already on the move up, though, indicating that bullish momentum is returning. Still, a deeper pullback might still reach the 61.8% Fib that’s closer to the area of interest.
Not a fan of the commodity currencies these days? You might like this bearish correction setup on AUD/JPY instead!The currency pair recently broke below its head and shoulders neckline and appears to have completed the retest. Price could be headed south and aiming for the next downside targets marked by the Fib extension tool.
The 100 SMA has crossed below the 200 SMA to indicate that the selloff is likely to gain traction from here. Meanwhile, Stochastic has a bit of room to move lower before reflecting oversold conditions or exhaustion among sellers.