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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
Major Forex Pairs Price Performance

USD

The dollar capped off another week mostly in the red, except against the Japanese yen, as risk appetite stayed in play.

Dollar traders could turn their attention back to fundamentals as the NFP report is lined up, along with a bunch of leading jobs indicators. Read more.

CAD

The Loonie had a mixed performance but wound up net positive, thanks to OPEC production cut hopes.

The cartel is due to meet early this week, so crude oil volatility could carry over to the correlated Loonie. Don’t forget that Canada also has its jobs report due! Read more.

EUR & CHF

The shared currency had a mostly positive week, except against a couple of comdolls, while the franc had a mixed run.

A handful of mid-tier reports are due from the Swiss economy, including its CPI and GDP, while the eurozone has only low-tier reports on the docket. Read more.

GBP

Sterling was off to a good start but gave up those gains and more as Brexit talks still failed to produce a deal.

The clock is winding down for the U.K. to exit the region, and the lack of major reports this week could keep pound pairs sensitive to Brexit updates and counter currency flows. Read more.

JPY

The yen found itself at the bottom of the forex pile as risk-taking was in play on account of positive vaccine news.

Only low-tier reports are due from Japan this time, so it’s likely that the yen could keep taking cues from risk sentiment. Read more.

AUD

The Aussie was a big winner in the previous week as risk appetite extended its stay and the Land Down Under printed upbeat reports.

Australia is due to release its quarterly GDP this week while the RBA has another rate decision coming up. Read more.

NZD

The Kiwi also chalked up significant wins for the week as it took advantage of stronger demand for higher-yielding currencies.

The lack of major catalysts from New Zealand over the next few days could keep the Kiwi sensitive to counter currency action and risk flows. Read more.

Forex Charts to Watch:

GBP/JPY: 1-hour

GBP/JPY 4-hour Forex Chart
GBP/JPY 1-hour Forex Chart

First up is this potential reversal setup on Guppy!

The pair could be tired from its climb as it made a couple of failed attempts to break past the 140.00 mark, creating a double top pattern on its 1-hour chart.

Technical indicators suggest that there’s still a chance for the climb to carry on, though, as the 100 SMA is above the 200 SMA while Stochastic is indicating oversold conditions.

EUR/GBP: 4-hour

EUR/GBP 1-hour Forex Chart
EUR/GBP 1-hour Forex Chart

Here’s another potential reversal setup on a pound pair!

EUR/GBP is forming a double bottom on its 1-hour chart, suggesting that it could pull up from its dive soon.

Price has yet to break above the neckline around the .9000 major psychological resistance to confirm that an uptrend is in the works. If this keeps gains in check, the pair could resume the drop to the lows at .8900.

The 100 SMA is still below the 200 SMA to hint that the selloff could resume while Stochastic is reflecting exhaustion among buyers.

AUD/USD: 1-hour

AUD/USD 1-hour Forex Chart
AUD/USD 1-hour Forex Chart

Not a fan of the pound or of reversal setups? You might wanna take a look at this retracement play on AUD/USD instead!

The pair recently busted through resistance at the .7300-.7350 area but is now retreating from its recent highs at .7400.

Applying the Fib retracement tool shows that the 50% to 61.8% levels span this area of interest that could hold as support. A shallow correction could already find buyers at the 38.2% Fib or the .7350 minor psychological mark.

This lines up with the 100 SMA dynamic inflection point that could add to its strength as support. Stochastic is still on the move down but closing in on the oversold region to suggest that sellers need a break soon.