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
The scrilla chalked up a mixed performance for the week, as it was off to a good start but eventually caved to uncertainty surrounding Fed stimulus and jobs data.
The Loonie outperformed most of its forex rivals, except for the Aussie, as it was boosted by upbeat data from Canada.
EUR & CHF
It was a choppy run for both lower-yielding European currencies in the past week, although the shared currency managed to catch some wins on upbeat low-tier data.
Another batch of low-tier reports and leading indicators are on the docket, so there could still be a chance for market sentiment or counter currency action to push EUR and CHF pairs around. Read more.
Sterling also had a choppy performance last week as traders grappled with the possibility of another U.K. lockdown versus upbeat economic reports.
Yen pairs tossed and turned for the most part of the week as it reacted to counter currency action, along with quick changes in market sentiment.
There are still no major reports due from the Japanese economy this time, so it’s likely that risk sentiment could take center stage once again. Read more.
Even with a few risk-off flows in play, the Aussie managed to claim the top spot as traders focused on improving economic data from the Land Down Under.
But could pandemic-related fears erase these gains? The focus has been on the surge in confirmed cases in Australia, so another week of rising numbers could be enough to draw AUD bears out. Read more.
The Kiwi was unable to follow the Aussie’s footsteps as it caved to risk-off flows and choppy market conditions.
The RBNZ decision could change all that this week, though, as traders are likely to pay close attention to what policymakers have up their sleeve now that New Zealand is weathering the pandemic pretty well. Read more.
Forex Charts to Watch:
Reversal alert!Cable seems to be done with its climb as the pair logged in a couple of failed attempts to break past the 1.3170 area.
This was enough to create a double top formation with the neckline around the 1.3000 major psychological mark. A break below this support level could confirm that pound bears are in control and could take price down by the same height as the chart pattern.
The 100 SMA may be above the 200 SMA for now, but note that the gap between the technical indicators has narrowed to reflect weakening bullish pressure. Stochastic is pulling up from the oversold region to suggest a return in buying energy, though.
Here’s another potential reversal play on a dollar pair!USD/CHF might be in for an uptrend as price formed a double bottom on its 1-hour time frame. The currency pair is just halfway through on its move up to the neckline resistance at the .9250 minor psychological mark.
Moving averages seem to be attempting a bullish crossover to confirm that more gains are in the works, but Stochastic is heading south so the price could still follow suit.
Not a fan of the dollar these days? Better check out this possible reversal on a comdoll pair instead!AUD/CAD appears to be forming a head and shoulders pattern on its 1-hour time frame. A break below the neckline around .9500-.9550 could set off a drop that’s the same height as the chart pattern.
The 100 SMA already crossed below the 200 SMA to hint that sellers are already gaining the upper hand. Just be careful when shorting while Stochastic is indicating oversold conditions or exhaustion among sellers!