Start your trading prep with a review of last week’s price action and an overview of catalysts coming up.
Take a look at how the majors performed recently and the upcoming catalysts to watch out for:
Major FX Pairs Overview
Price action was mixed for dollar pairs throughout the week, but the scrilla closed net negative as economic data and the Fed outlook seemed grim.
There’s not much in the way of top-tier data from Uncle Sam this week, leaving dollar traders to take cues from market sentiment and earnings reports. Read more.
An upbeat BOC statement pulled the Loonie out of its mixed run and allowed the commodity currency to end mostly in the green last week.
Canada’s retail sales and inflation numbers are lined up next, and another round of strong figures could underscore the central bank’s optimistic tone. Read more.
EUR & CHF
Euro bulls were able to charge last week on hopes of the EU Recovery Fund getting the green light soon while the franc reeled from SNB intervention talks.
The EU Summit is still ongoing and any form of agreement on the allocation of funds could be bullish for the shared currency. Apart from that, the PMI readings due late in the week could also spur additional volatility. Read more.
Sterling gave up the crown from the other week and tumbled all the way down to the bottom spot this time as BOE officials were mostly downbeat.
U.K. retail sales and flash PMI readings are on this week’s docket, so major improvements in consumer spending and business activity could boost the pound again. Read more.
The lower-yielding yen tossed and turned last week as risk sentiment made huge swings while the BOJ wasn’t exactly in a positive mood.
There are no major reports due from Japan next, so yen pairs could once again take their cues from overall market sentiment based on pandemic updates and earnings releases. Read more.
Thanks to a pickup in risk-taking, the higher-yielding Aussie came close to securing the top spot despite second wave concerns in the Land Down Under.
The RBA minutes are due next, and this should give traders a better idea of whether or not the central bank is still open to further easing. Read more.
Even with stronger risk-on flows, the Kiwi trailed behind its peers as New Zealand printed a downbeat inflation report.
The lack of major reports from New Zealand this week could leave Kiwi traders looking for price clues from market risk appetite. Read more.
Forex Charts to Watch:
Whether you’re in for a simple consolidation play or in the mood for a big breakout, this symmetrical triangle setup on Cable might be worth keeping a close eye on.Price just bounced off support and might be setting its sights on the top around the 1.2600 major psychological level.
Technical indicators are hinting that the resistance is more likely to hold than to break. The 100 SMA is below the 200 SMA to indicate that the path of least resistance is to the downside while stochastic is reflecting exhaustion among buyers.
Sustained selling pressure might even lead to a break below the triangle support and a selloff that’s at least the same height as the chart pattern.
Looking to go with the flow? This trend setup on the 1-hour time frame of GBP/CHF might work out for ya!
Price is still cruising inside its ascending channel and has just bounced off support, likely aiming for the upside targets at the channel top or mid-channel area of interest next.
Stochastic is pulling up from the oversold region to confirm that bulls are taking over while sellers take a break. However, the 100 SMA has crossed below the 200 SMA to signal that bearish pressure might pick up.
Here’s another potential bullish GBP play for y’all!
GBP/CAD has formed higher highs and higher lows to trade inside a rising channel on its 1-hour chart. The pair is already halfway through on its move higher but still has room to climb before reaching the channel top.
Just be mindful of a return in bearish momentum at current levels, though, as Stochastic looks ready to head south from the overbought zone. At the same time, the 100 SMA crossed below the 200 SMA to hint that bears are taking over.