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
Stronger risk-taking lifted the Loonie for the most part of the week, but the Canadian currency gave up some gains on account of downbeat data.
EUR & CHF
The euro was able to squeeze out some gains thanks to upbeat figures while the Swiss franc ended up in the red as risk appetite surged later on.
Sterling was bogged down by mostly downbeat reports and stricter lockdown measures, along with the usual set of Brexit-related uncertainties.
There were no major catalysts from the Japanese economy last week, leaving the yen sensitive to markets sentiment and dollar action.
Only a few low-tier reports are on deck this time, so the yen might keep taking directional cues from risk appetite. Read more.
The lack of major reports this time could keep the Aussie banking on demand for higher-yielding currencies if risk appetite extends its stay. Read more.
No data? No problem! The Kiwi was able to score a positive run for the week as it was buoyed by strong risk appetite.
Forex Charts to Watch:
Check out this neat trend setup on CAD/JPY!The pair made lower highs and lower lows, creating a descending channel visible on its 4-hour time frame. Price looks ready to test the top of the channel but also seems to be hitting a ceiling at the 61.8% Fib.
If the nearby resistance levels are able to keep gains in check, CAD/JPY could slide back to the swing low at 77.90 or the channel bottom closer to the 77.50 minor psychological mark.
Here’s another retracement play on a yen pair! This time, I’m looking at the potential downside targets for AUD/JPY.Price is already testing the top of the channel and might be looking to retreat to nearby support areas. The Fibonacci extension tool shows other potential downside targets, with the 50% level lining up with the mid-channel area of interest around 73.75.
Stronger selling pressure could drag AUD/JPY down to the 61.8% extension that coincides with the swing low or the full extension near the channel bottom at 72.00.
Not a fan of the yen? You might wanna play this trend on EUR/GBP instead!The pair is also cruising lower inside a falling channel on its 4-hour chart but is still hanging out around the middle.
Technical indicators suggest that the downtrend could continue as the 100 SMA is below the 200 SMA dynamic resistance, which is close to the channel top.
Stochastic is also heading lower to confirm that bearish momentum is in play, possibly taking EUR/GBP back to the channel support or even below it!