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 could take its cues from election updates and overall market sentiment this week, as the U.S. economy’s calendar is mostly empty. It’s worth keeping tabs on Fed head Powell’s testimony to gauge stimulus prospects, though! Read more.
EUR & CHF
There’s not much in the way of top-tier reports from the eurozone early in the week, but the action could heat up on Friday as the October PMI readings are on the docket.
All eyes and ears are on Brexit updates these days, along with the U.K. government’s efforts to keep the coronavirus outbreak in check. The U.K. CPI release and BOE head Bailey’s speech could add to the volatility this week. Read more.
Forex Charts to Watch:
First up is this simple range setup on the 4-hour chart of EUR/AUD.The pair has found support at the 1.6135 level and resistance at the 1.6550 minor psychological mark. Price is testing the top of the range once more and might attempt to break higher.
However, Stochastic is suggesting that buyers could use a break as the oscillator is in the overbought zone. In that case, a dip back to the range bottom or at least until the area of interest around the 1.6350 minor psychological level could follow.
Reversal alert!NZD/USD might be done with its climb as it formed a head and shoulders pattern on its 4-hour chart. A break below the neckline around 1.6520 could confirm that a downtrend is due.
Stochastic is still pointing up from the oversold region to show that buyers have the upper hand for now, but the 100 SMA has crossed below the 200 SMA to indicate that sellers are ready to take over.
Price also found resistance at the 200 SMA dynamic inflection point and is attempting to move below the 100 SMA as well. Don’t miss the neckline breakdown since it could be followed by a drop of the same height as the formation, which spans roughly 280 pips!
It looks like bearish momentum is gaining traction on this one!EUR/USD completed its retest of the broken support at 1.1800, so bearish pressure is picking up and could be enough to take price to the next downside targets.
The Fibonacci extension tool shows where sellers could book profits. Price is closing in on the 38.2% level at 1.1678, but stronger selling pressure could still take the pair down to the 50% level at 1.1613 or the 61.8% Fib that lines up with the swing low. The full Fibonacci extension is at 1.1413.
Stochastic is already starting to pull up from the oversold region, indicating that exhausted sellers want to take a break and let buyers take over.