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Start your trading prep with a review of last week’s price action and an overview of catalysts coming up.

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

Traders showed no love for the scrilla last week as U.S. economic data disappointed and the next batch of stimulus seemed unlikely.

A couple of big events, namely the FOMC decision and the release of the advanced GDP for Q2, are lined up next and could bring a lot of volatility for dollar pairs. Read more.

CAD

Downbeat data from Canada and risk-off flows combined forces to drag the Loonie south for the most part of the previous week.

Only the monthly GDP is due from Canada this time, so the currency could also take cues from overall sentiment and crude oil price action. Read more.

EUR & CHF

Both currencies were off to a shaky start but managed to climb to the top of the charts when the spotlight turned to the EU Recovery Fund approval.

Another batch of low to mid-tier reports are lined up from both the eurozone and Swiss economy this week, possibly putting the attention back to fundamentals. Read more.

GBP

Sterling returned its gains from earlier in the week when Brexit uncertainties resurfaced and dampened its spirits.

This week could shape up to be a slow one for pound pairs as there are no major catalysts lined up. Still, stay on the lookout for Brexit-related updates, as well as counter currency action. Read more.

JPY

Risk rallies during the first part of the week pushed the lower-yielding yen so low against its peers that it barely pulled up when caution returned to the markets later on.

Only a handful of low-tier reports is due from Japan next, so it could still be all about risk appetite from here. Read more.

AUD

The Aussie raked in gains from a relatively upbeat RBA statement earlier in the week but gave up those winnings when risk-off flows returned later on.

Aussie traders have the quarterly CPI from the Land Down Under to look forward to, along with official PMI data from China. Tensions between the U.S. and China, as well as gold price rallies, might also impact AUD action. Read more.

NZD

There were no major reports out of New Zealand in the previous week, leaving the Kiwi to take cues from sentiment and counter currency flows.

The same could be the case in the upcoming days as New Zealand’s calendar is nearly empty and a handful of other top-tier reports might influence NZD direction instead. Read more.

Forex Charts to Watch:

AUD/USD: 4-hour

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

Here’s a simple uptrend play on the 4-hour chart of AUD/USD to start off!

The pair has formed higher lows that can be connected by a rising trend line since mid-June, and it looks like another test of support is in order.

Aussie bulls might be hanging around the Fib retracement levels, particularly the 61.8% Fib that’s closest to the trend line and 100 SMA dynamic inflection point. This indicator is above the slower-moving 200 SMA to confirm that support levels are more likely to hold than to break.

In addition, Stochastic is pulling up from the oversold region to signal a return in bullish pressure, so a bounce back to the swing high might follow soon.

AUD/JPY: 4-hour

AUD/JPY 4-hour Forex Chart
AUD/JPY 4-hour Forex Chart

Nope, you ain’t seeing double! This one’s a 4-hour chart of AUD/JPY, which is also moving above a rising trend line and testing support at the Fibs.

In fact, price is already starting to bounce off the area of interest at the 61.8% level, former resistance, 100 SMA dynamic support, and 75.00 major psychological mark.

To make things sweeter for Aussie fans, a bullish divergence has formed as price made higher lows while Stochastic had lower lows. With that, the pair could rally back to the swing high in no time, especially since the moving averages confirm that the uptrend could gain traction from here!

USD/CAD: 1-hour

USD/CAD 4-hour Forex ChartUSD/CAD 4-hour Forex Chart
USD/CAD 1-hour Forex Chart

Not a fan of the Aussie? Can I interest you in a break-and-retest play on a Loonie pair instead?

USD/CAD recently crashed below its descending triangle support to signal that a selloff of the same height as the chart pattern might take place. However, the pair looks like it could use a pullback to draw more sellers to the game.

Using the Fib tool on the breakdown reveals that the 61.8% level is right smack in line with the broken support, 200 SMA dynamic resistance, and 1.3500 major psychological mark. More sellers might be waiting right there!

But if bearish momentum is just too strong at this point, the 38.2% level and 100 SMA dynamic inflection point might be enough to keep gains in check as Stochastic is already starting to head south.