Start your trading prep with an overview of catalysts coming up.
I’ve got some chart setups to keep tabs on, too!
Take a look at how the majors performed recently and the upcoming catalysts to watch out for:
Major FX Pairs Overview
Even with the FOMC decision and the advance Q4 2020 GDP release last week, the Greenback was unable to pick a clear direction. The NFP report is coming up next, and a strong increase in employment could give the currency a boost. Read more.
The Loonie slumped to the bottom of the forex charts last week, next only to the Aussie, as risk-off flows were in play. The upcoming jobs report might extend these losses this week. Read more.
EUR & CHF
The euro chalked up a mixed run but was mostly in the green while the franc lost out only to the Aussie and Loonie. A handful of leading indicators are due from the euro zone, including flash CPI estimates. Read more.
Sterling was net positive for the past week as jobs data surprised to the upside. Can it hold on to its gains with the BOE decision, MPC minutes, and quarterly monetary policy report lined up? Read more.
The yen lost ground to its higher-yielding rivals in the past week but managed to score some wins versus the Aussie. There are no major reports coming up from Japan, so sentiment could still push yen pairs around. Read more.
Aussie bears painted the town red last week as traders were wary of a stock market bubble and a potential delay to government stimulus. The RBA is scheduled to make their policy decision this week but no changes are eyed. Read more.
The Kiwi had a pretty mixed run, even with risk-off flows coming in play. New Zealand’s quarterly jobs report might provide a clearer direction for the currency this week. Read more.
Forex Charts to Watch:
First up is this break-and-retest situation going on with EUR/JPY!The pair recently busted through the resistance of its rising wedge pattern on the 1-hour chart and looks ready to pull back. Using the handy-dandy Fib tool shows where buyers might be waiting to join in.
The 38.2% level is close to the broken wedge top around 126.70 while the 50% level is near the 126.50 minor psychological support. A larger correction could last until the 61.8% level that coincides with the 100 SMA dynamic inflection point.
This faster-moving MA is above the 200 SMA to hint that support levels are more likely to hold than to break. Stochastic has some room to move south but is closing in on the oversold region, too.
Next up is this simple range play on the short-term chart of USD/CHF.Price has been pacing back and forth between support at .8855 and resistance at .8920. Sellers might be looking to hop in at this resistance test, especially with Stochastic indicating exhaustion among buyers.
However, the 100 SMA just crossed above the 200 SMA to indicate that there’s a chance that the range top could be broken. If that happens, USD/CHF could be in for a climb that’s at least the same height as the rectangle pattern.
Looking to trade GBP during the BOE decision? Here’s a setup that you might wanna keep tabs on.GBP/CAD is in correction mode after recently breaking above the 1.7500 handle. Price could retreat to the 50% level that lines up with an area of interest near the 200 SMA dynamic support.
The 100 SMA is above the 200 SMA to suggest that the climb is likely to resume and take the pair back up to the swing high. Heck, Stochastic is already turning higher to hint that buyers are eager to take over at current levels!