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 had a mixed run as it was pushed around by varying market themes throughout the week, including Pfizer’s vaccine updates and Fed commentary.
Retail sales figures are due early in the week, then market sentiment and pandemic-related updates might take center stage once again. Read more.
The Loonie underperformed most of its peers since there were no major catalysts to encourage traders to buy up the Canadian currency.
Inflation and consumer spending reports are up for release from Canada this week, along with leading jobs indicators from ADP. Read more.
EUR & CHF
A combination of weak data, dovish ECB rhetoric, and a pickup in risk appetite weighed on the performance of the euro and franc last week.
An extension of risk-on flows for the next few days could continue to weigh on these European currencies since there are no major reports lined up. Read more.
Sterling managed to score some gains against most of its peers last week, shrugging off downbeat jobs data and the standstill in Brexit talks.
Retail sales and CPI figures are the reports to watch this time, along with some speeches by BOE head Bailey. Read more.
The yen caved to risk-taking as traders went for higher-yielding currencies on positive vaccine news.
There are no major reports due from Japan this week, so yen traders might keep taking cues from counter currency flows or market sentiment. Read more.
Risk appetite worked in the Aussie’s favor, thanks to news that Pfizer is making great strides in developing a COVID-19 vaccine.
The RBA meeting minutes are up for release next, and indications on future policy actions could set the tone for AUD trading. Read more.
The Kiwi also took advantage of risk appetite in the previous week and got an extra boost from upbeat RBNZ commentary.
The lack of data from New Zealand this week could keep Kiwi traders on the lookout for other catalysts from counter currencies. Read more.
Forex Charts to Watch:
First up is this break-and-retest situation that’s about to play out on AUD/JPY yo!The pair busted out of the descending trend channel we were watching last week, indicating that a reversal from the downtrend is due.
Before that happens, price could retest the broken channel top, which might now hold as support. This lines up with the 5o% Fibonacci retracement level just around the 75.00 major psychological support.
The moving averages are turning higher and a bullish crossover could take place soon while Stochastic is starting to pull up from the oversold region.
Guppy seems to have completed its retest of an area of interest and might be setting its sights on the next upside targets.The Fibonacci extension tool shows where bulls might be looking to book profits. In particular, the 50% level could be a prime resistance area since it lines up with the swing high at the 140.50 minor psychological mark.
Stochastic is starting to move north, so price could follow suit as buyers take over. Also, the 100 SMA might be attempting to cross above the 200 SMA to confirm that bullish momentum is returning.
Not a fan of the yen? You might wanna look at this support-turned-resistance play on USD/CAD instead.The pair is also completing its retest of an area of interest which lines up with the 50% Fibonacci retracement level. A larger pullback could still test the 61.8% Fib at 1.3214 before resuming the slide to the swing low.
Technical indicators confirm that bearish pressure could return since Stochastic is already heading south from the overbought zone. The 100 SMA is below the 200 SMA to suggest that resistance levels are likely to hold, too!