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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 FX Pairs Performance from MarketMilk
Major FX Pairs Performance from MarketMilk

USD

The Greenback left its peers eating dust as it popped higher from risk aversion late in the week.

A bunch of mid-tier reports such as durable goods orders data and personal spending figures is lined up next, but overall market sentiment might still be the main driving factor for dollar price action. Read more.

CAD

It was a choppy week for the Loonie as it tossed and turned to counter currency flows and risk sentiment.

There are no major reports due from the Canadian economy for the entire week, which suggests that these same factors could push Loonie pairs around. Read more.

EUR & CHF

It was a relatively quiet week for the euro and the Swiss franc in terms of data, as both currencies took cues from market sentiment.

Flash PMI readings from the manufacturing and services sectors of Germany and France are lined up next while the Swiss economy has no catalysts on deck. Read more.

GBP

The pound was the biggest loser for the week since it was bogged down by a worsening COVID-19 situation, additional BOE easing, and downbeat U.K. data.

Flash PMI reports from the manufacturing and services sectors are coming up, and improvements are eyed for the current month. Read more.

JPY

The yen found itself at the top of the forex charts as it took advantage of risk-off flows later in the week.

A handful of low-tier reports, including the monthly CPI figure, are due from Japan this time. Other than that, yen pairs might still take cues from market sentiment. Read more.

AUD

The Aussie chalked up a mixed run for the week as it moved to the tune of counter currency flows and risk appetite. Weak data from the Land Down Under also came in play.

With hardly any reports on tap this time, the higher-yielding commodity currency could once again take cues from risk sentiment. Read more.

NZD

The Kiwi lagged behind its peers for the week as it got hit by mostly downbeat data and a bout of risk aversion.

The RBNZ decision is the main event for the Kiwi as the central bank might refrain from making interest rate changes, unlike its peers. Read more.

Forex Charts to Watch:

GBP/AUD: 1-hour

GBP/AUD 1-hour Forex Chart
GBP/AUD 1-hour Forex Chart

GBP/AUD has formed lower highs and lower lows on its short-term chart, cruising inside a falling channel and currently testing resistance levels.

In particular, price is hovering around the mid-channel area of interest and 50% Fib retracement level. Holding as resistance could allow the pair to resume the slide back to the swing low or the channel bottom around 1.7900.

The 100 SMA is below the 200 SMA to confirm that the selloff is likely to resume while Stochastic is closing in on the overbought region. The faster-moving MA is also in line with the top of the channel and 61.8% Fib as the last line of defense for sellers.

NZD/CAD: 4-hour

NZD/CAD 1-hour Forex Chart
NZD/CAD 4-hour Forex Chart

Here’s another channel on the comdolls y’all!

NZD/CAD has formed higher lows and higher highs to create a rising channel on its 4-hour time frame. Price is currently bouncing off resistance and might be in for a correction to nearby support levels.

The 100 SMA is above the 200 SMA to signal that the uptrend is likely to carry on while Stochastic is nearing oversold territory to reflect exhaustion among sellers. Turning higher could boost bullish momentum, but a larger pullback could still find buyers around the 50% Fib and 200 SMA dynamic inflection point.

USD/JPY: 1-hour

USD/JPY 4-hour Forex Chart
USD/JPY 1-hour Forex Chart

Not a fan of trends these days? Here’s a consolidation play or potential breakout setup on USD/JPY!

The currency pair formed lower highs and higher lows to create a symmetrical triangle on its 1-hour chart. Price is currently testing support and could be due for a bounce back to resistance at 107.25.

The 100 SMA is still below the 200 SMA to hint that support is more likely to break than to hold. If that happens, USD/JPY could tumble by at least the same height as the triangle formation or roughly 100 pips. Stochastic is also pointing south, so the price could follow suit.