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 Greenback was down in the dumps mostly due to risk-on flows stemming from the possibility of another stimulus package from the U.S. government.
There are no major reports lined up from the U.S. economy this week, so the attention could stay on COVID-19 updates and geopolitical tensions. Read more.
The Loonie had a pretty rough week as it tumbled on account of lower crude oil prices, shrugging off positive updates from the Canadian economy.
The jobs report is up for release later in the week, and an upbeat read could be enough to prop up the Canadian dollar. Read more.
EUR & CHF
The euro and franc saw choppy sideways action as these lower-yielding European currencies reacted to counter currency movements.
Sterling was off to a running start thanks to hawkish BOE comments, and the currency managed to go for more gains as Brexit talks turned out well.
The safe-haven yen was also a net loser for the week as traders decided to go for riskier higher-yielding currencies instead.
Only a handful of low-tier business reports are queued from the New Zealand economy, which could leave the Kiwi sensitive to market sentiment. Read more.
Forex Charts to Watch:
First up is an update on the EUR/AUD 4-hour range we were watching last week.Price bounced off the resistance as expected, falling down to the middle of the range and likely set its sights on the floor.
The moving averages are holding as dynamic support levels at the moment, and the bullish crossover suggests that a bounce higher might follow. Stochastic also looks ready to move higher, so the currency pair might follow suit as buyers take over.
Stochastic has a bit more room to climb before reflecting exhaustion among buyers, but the oscillator seems to be topping out to suggest that sellers are regaining the upper hand. The 100 SMA is below the 200 SMA to indicate that resistance is more likely to hold than to break.
Break-and-retest alert!AUD/CHF recently fell through the bottom of its symmetrical triangle to signal that a downtrend is about to follow. However, sellers might need a quick pullback to the broken support before pushing the pair further south.
The 61.8% Fib close to the triangle bottom already seems to be holding as a ceiling, so the pair could head back down to the swing low around .6500 next. The 100 SMA is below the 200 SMA, and these moving averages are holding as dynamic resistance levels as well.