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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

The U.S. Presidential elections are bound to shake things up for the Greenback early this week, then the action could pick up again around the FOMC decision and NFP release. Quite an exciting week, huh? Read more.

CAD

Canada is also scheduled to print its October jobs figures later in the week, which means the Loonie might have to take cues from market sentiment and crude oil prices prior to that. Read more.

EUR & CHF

Can the lockdowns all over Europe keep dampening the shared currency’s spirits? Or will low-tier releases and a bit of risk aversion drive up demand for the lower-yielding franc and euro? Read more.

GBP

Sterling was also reeling from newly-imposed lockdown measures, and the upcoming BOE decision could bring more downside if policymakers sound extra cautious. Read more. 

JPY

Only a handful of low-tier reports is lined up from the Japanese economy this week, so the yen might have to hold out for major changes in risk sentiment. Read more.

AUD

The RBA decision is coming up this week, and some are counting on upbeat remarks from policymakers since the Land Down Under has been weathering the pandemic relatively well. Read more.

NZD

The Kiwi might be able to recover from last week’s risk-off slide if the upcoming quarterly job release turns out better than expected. Read more.

Forex Charts to Watch:

USD/CAD: 4-hour

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

Who’s up for a potential reversal on USD/CAD?

The pair made a couple of failed attempts to break below the 1.3000 handle and looks ready to test the neckline resistance at the 1.3450 minor psychological mark.

A break above this could set off a climb that’s roughly the same height as the chart formation, but the 100 SMA just crossed below the 200 SMA to suggest that the resistance could hold.

Stochastic is also pointing down to indicate that selling pressure is present, so USD/CAD might still retreat to the lows again.

NZD/USD: 4-hour

NZD/USD 4-hour Forex Chart
NZD/USD 4-hour Forex Chart

If you’d rather go with the flow, then this ascending trend channel setup might be more interesting!

NZD/USD made higher lows and higher highs to trade inside this channel, and the pair is closing in on support. A bounce off this area could allow the uptrend to resume.

Technical indicators confirm that the floor is likely to hold, as the moving averages just made a bullish crossover. Stochastic is also indicating oversold conditions or exhaustion among sellers, so buyers might take over.

EUR/JPY: 4-hour

EUR/JPY 4-hour Forex Chart
EUR/JPY 4-hour Forex Chart

Who’s up for a countertrend play?

EUR/JPY is also trending inside a channel but is testing the bottom of a descending channel.

A bounce could take it up to the nearby resistance levels marked by the Fibonacci retracement tool, especially since Stochastic is in the oversold region.

If you’re bearish on this pair, you could wait and see if any of the Fibs hold as a ceiling instead. That way, the price might have a better shot at returning to the swing low or the channel bottom.