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 run for the week as it was pushed around by Fed rhetoric and downbeat U.S. data.
Fed head Powell has a number of speeches lined up that could clarify the central bank’s outlook while PMI figures are also due midweek. Read more.
The oil-related Loonie was unable to take advantage of higher oil prices as it reeled from mostly downbeat economic figures from Canada.
There are no major reports on the Canadian dollar’s docket this week, which might leave it sensitive to commodity price action and overall market sentiment. Read more.
EUR & CHF
Traders showed no love for the euro or franc in the past week as traders seemed focused on the impact of a no-deal Brexit on the entire region.
It’s PMI week for the euro zone, which means a glimpse into how business conditions fared throughout the month and how other major economic reports might turn out. Read more.
Just when it looked like sterling was ready for a comeback, all that buzz about negative rates during the BOE decision and rising odds of a no-deal Brexit erased recent gains.
PMI readings and a couple of speeches by BOE head honcho Bailey could bring in some volatility for pound pairs this time. Read more.
The lower-yielding yen scored the top spot as risk-off flows were in play, along with upbeat vibes from the BOJ decision and optimism for the new Japanese PM.
There’s not much in the way of major catalysts from Japan in the next few days, which could leave the yen moving to the tune of market sentiment. Read more.
It was a mixed one for the Aussie as it tossed and turned to the Land Down Under’s economic releases and changes in market sentiment.
There are no top-tier reports due from Australia this time, which means that risk appetite and counter currency action might push AUD pairs around. Read more.
The Kiwi was also one of the top performers for the week, thanks mostly to positive remarks from RBNZ officials and upbeat data from New Zealand.
The RBNZ decision is coming up early this week and, even though no changes are eyed, optimistic remarks might be enough to lift the Kiwi’s spirits. Read more.
Forex Charts to Watch:
Looks like it’s a breakdown, fellas!Remember that long-term support level that Guppy was testing last week? Well it looks like bears won the tussle as the pair is gearing up for a major selloff.
Price also seems to have broken below a small bearish flag pattern and could be in for a slide that’s at least the same height as the mast. Another good estimate for the decline might be the size of the rising wedge pattern on this daily time frame.
Technical indicators are looking mixed, with Stochastic indicating oversold conditions and the 100 SMA staying below the 200 SMA.
It looks like this pair completed a retest y’all!EUR/GBP is already bouncing off the area of interest around the .9050 minor psychological mark and might be setting its sights on the next upside targets.
The Fibonacci extension tool shows where buyers might book profits. In particular, the 50% level is looking like a strong ceiling as it lines up with the swing high and is near the .9300 handle.
Stochastic is heading north but already in the overbought zone to reflect exhaustion among buyers. Then again, the 100 SMA just crossed above the 200 SMA to confirm that bullish momentum is picking up.
Who’s up for a potential breakout?AUD/CHF has formed higher lows and lower highs to consolidate inside a symmetrical triangle, but it looks like a bullish break is due.
The 100 SMA is safely above the 200 SMA, and the gap between the indicators is widening to reflect accelerating bullish pressure. Stochastic also has room to head north so price could follow suit, possibly going for a rally that’s the same height as the triangle pattern.