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
USD
The scrilla had a rough run as it barely pulled up from a lackluster performance for the most part of the week, bogged down by downbeat Fed rhetoric and not-so-impressive data.
The FOMC minutes could take center stage this week, along with U.S. retail sales figures that might provide a better idea of how consumers are dealing with the pandemic. Read more.
CAD
The Loonie had a mixed run for the week as the lack of major releases left the currency sensitive to risk flows and counter currency movements.
Canada has its inflation and consumer spending reports coming up, and weak results might keep BOC easing expectations in play. Read more.
EUR & CHF
The euro and franc weren’t exactly trading in tandem last week, as the former had a relatively quiet run while the latter managed to close out net positive.
Flash PMI readings are lined up from the euro region this time, although the ZEW economic figures due much earlier on are worth watching also. Read more.
GBP
Sterling was able to stage quite the comeback late in the week as optimism about the declining number of COVID-19 cases drew bulls out.
The U.K. economy will be printing its CPI readings and retail sales reports this week, but the PMI reports due later on might steal the show. Read more.
JPY
Risk-on flows weighed on the lower-yielding Japanese yen, dragging it down to net negative territory by the end of the week.
A handful of mid-tier reports are lined up from Japan this time, although the safe-haven currency might still wind up sensitive to market sentiment. Read more.
AUD
The higher-yielding Aussie held on to the top spot for another week, thanks mostly to risk-on flows and upbeat data.
The employment report is the main event for the Land Down Under this week, but don’t forget to keep tabs on any changes in risk sentiment! Read more.
NZD
The Kiwi failed to take advantage of risk-on flows likely because the RBNZ hack and trade issues with China caused some concerns.
There are no major reports lined up from New Zealand this time, but this quiet week could offer the Kiwi a chance to recover from last week’s mishaps. Read more.
Forex Charts to Watch:
NZD/CHF: 4-hour
If you like going with the flow, then this trend setup on the 4-hour chart of NZD/CHF might work out for ya!
The pair is cruising inside a rising channel and is currently testing the mid-channel area of interest. This lines up with the 50% Fib that appears to be keeping losses in check.
In that case, the pair might be ready to bounce back to the swing high around .6505 or the channel resistance. Stochastic has room to climb while the moving averages also confirm the presence of bullish momentum.
GBP/NZD: 1-hour
Anyone up for a breakout play?
GBP/NZD is consolidating inside a rising wedge on its short-term chart and is currently testing resistance. Stochastic moving south could mean that the pair is due to head back to support again soon.
However, the 100 SMA is above the 200 SMA to suggest that bulls could defend the wedge support, especially since it lines up with a dynamic inflection point.
If buyers are strong enough, a bullish breakout might even follow and lead to a rally that’s the same height as the chart pattern!
EUR/NZD: 4-hour
Looking for another trend setup? This one looks just about ready to play out!
EUR/NZD is already bouncing off a falling trend line on its 4-hour time frame, and technical indicators suggest that the selloff could carry on.
The 100 SMA is below the 200 SMA and has just held as dynamic resistance while Stochastic is heading south, so price could follow suit.
The Fibonacci extension tool shows the levels that bears might be aiming for, with the 50% level lining up with the swing low. The full extension is at 1.6442.
