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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!

FX Week Ahead

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 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.

Retail sales figures are due early in the week, but traders might hold out for Fed head Powell’s big speech on Wednesday. Read more.

CAD

The oil-related Loonie was a net loser for the week as risk-off flows returned and crude oil prices took hits.

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.

In the absence of major economic releases from the eurozone and Switzerland, the SNB might steal the show as they could once again jawbone the currency. Read more.

GBP

After a positive start, sterling returned most of its gains throughout the week as market sentiment had a huge shift later on.

Pound traders have a lot to look forward to, as a handful of economic figures are lined up and the BOE is widely expected to boost stimulus. Read more.

JPY

The safe-haven yen bagged the top spot as risk aversion came strongly in play when the market focus returned to the worsening pandemic.

The BOJ is gearing up to make its monetary policy announcement early this week, and a dovish decision is eyed. Read more.

AUD

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.

NZD

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.

New Zealand’s quarterly GDP is coming up next and a bit of a contraction is eyed. Still, overall market sentiment might be the main driver of Kiwi’s price action. Read more.

Forex Charts to Watch:

EUR/GBP: 1-hour

EUR/GBP 1-hour Forex Chart
EUR/GBP 1-hour Forex Chart

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.

Stochastic, on the other hand, is hovering close to the overbought zone to reflect exhaustion among buyers. Turning lower could confirm that bears are ready to take over and keep the range intact.

NZD/JPY: 1-hour

NZD/JPY 1-hour Forex Chart
NZD/JPY 1-hour Forex Chart

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.

AUD/JPY: 1-hour

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

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.