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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 was off to a weak start but managed to pull off a strong finish thanks to a pickup in risk aversion towards the end of the week.

It’s bound to be an exciting week for dollar pairs as traders will be keeping close tabs on speeches by Powell and Mnuchin, not to mention the NFP release on Friday! Read more.

CAD

The Loonie found itself at the bottom of the forex heap last week as risk-off flows and weaker oil prices came in play.

Canada’s monthly GDP and manufacturing PMI are up for release next, and strong results might be enough to lift the currency’s spirits if risk appetite keeps up. Read more.

EUR & CHF

Both European currencies were able to take advantage of risk-off flows in the previous week since there were hardly major reports on deck.

This time, only a handful of low-tier reports are lined up from the euro zone and Swiss economy, likely leaving market sentiment as a big driver of price action. Read more.

GBP

Sterling chalked up yet another week in the red as risk aversion, Brexit uncertainties, and concerns about a second wave of the pandemic were in focus.

BOE rhetoric could take center stage over the next few days as a number of MPC members are set to make speeches. Read more.

JPY

Risk aversion came in play late last week, but the lower-yielding yen struggled to take advantage of safe-haven demand as BOJ officials gave dovish commentary.

Only low-tier reports are on this week’s docket, so risk sentiment could be a primary driver of yen price action. Read more.

AUD

Even though risk-off flows were seen last week, the higher-yielding Aussie managed to hold on to the top spot thanks to somewhat positive RBA commentary.

Trade and retail sales figures are up for release from the Land Down Under this week, likely keeping the Aussie afloat if the results beat expectations. Read more.

NZD

Despite the run in risk aversion and cautious remarks from the RBNZ, the Kiwi still managed to catch some gains against its forex rivals.

There are no major catalysts from the New Zealand economy this week, so the commodity currency would have to take cues from overall sentiment. Read more.

Forex Charts to Watch:

GBP/JPY: 4-hour

GBP/JPY 4-hour Forex Chart
GBP/JPY 4-hour Forex Chart

GBP/JPY is starting a new trend as it forms higher lows and higher highs in a fresh rising channel on the 4-hour chart.

The pair is currently testing the channel bottom, and a bounce off support could take it back up to the nearby resistance levels. Price could climb all the way up to the channel top at 142.50 or the mid-channel area of interest.

The 100 SMA is above the 200 SMA for now, but the gap between the indicators is narrowing to signal weakening bullish momentum. Still, Stochastic is pulling out of the oversold region to suggest a return in buying pressure.

NZD/USD: 4-hour

NZD/USD 4-hour Forex Chart
NZD/USD 4-hour Forex Chart

Here’s another potential uptrend for y’all!

NZD/USD is forming higher lows connected by a rising trend line on its 4-hour time frame. Price could be due for another dip to this support area as it consolidates below the .6500 major psychological mark.

Applying the handy-dandy Fib retracement tool shows where buyers might be waiting. The 61.8% level lines up with the trend line and a former resistance area, so it might be the line in the sand for a correction.

Stochastic is already on the move up to signal a return in bullish pressure, so the pair could already find buyers around the higher Fibs.

AUD/USD: 1-hour

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

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

The currency pair has higher lows and lower highs visible on its 1-hour time frame, creating a symmetrical triangle pattern.

Support is being tested at the moment, and a bounce could still take price back up to the triangle top around the .6935 mark. Stochastic is heading north, so the pair could follow suit while bulls are charging.

However, the 100 SMA is attempting to cross below the 200 SMA to hint that a breakdown is possible. If that happens, a selloff that’s the same height as the chart pattern could ensue!