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 Greenback ended the week in the red against most of its peers, except against the Canadian dollar, as risk appetite returned.
This week should prove to be another exciting one, as the FOMC decision is coming up and the advanced GDP reading for Q4 2020 will be released. Read more.
CAD
The Loonie got a strong mid-week boost from the BOC decision but wound up returning some of its wins when the jobs report disappointed.
There are no major reports from Canada other than the monthly GDP release, so traders might take cues from crude oil prices and overall sentiment. Read more.
EUR & CHF
Thanks to mostly upbeat data from the region and upbeat commentary from ECB’s Lagarde, both the euro and franc closed the week on a positive note.
There are no major reports due from the eurozone and the Swiss economy this time, so both currencies might once again take cues from sentiment. Read more.
GBP
Sterling had a mixed run since it was pushed around by market sentiment and counter currency action on the lack of top-tier U.K. catalysts.
This week might be a repeat performance since only the mid-tier U.K. jobs report is on tap, and a disappointing read might be in the cards. Read more.
JPY
Yen bears painted the town red as risk appetite surged in the latter part of the week, leading traders to dump lower-yielding currencies.
Japan’s economic schedule is empty this trading week, which means that sentiment and counter currency action could dictate where yen pairs are headed. Read more.
AUD
After a choppy start, the Aussie managed to find its bullish bearings mid-week and take advantage of stronger demand for riskier assets.
Australia’s quarterly CPI readings are up for release this time, and upbeat results could support speculations that the RBA won’t be easing again anytime soon. Read more.
NZD
The Kiwi managed to stage quite a comeback from its downbeat performance the other week as it rallied on upbeat data and stronger risk appetite.
There are no major reports due from New Zealand this week, so it could be all about overall market sentiment again. Read more.
Forex Charts to Watch:
EUR/JPY: 1-hour
First up is this potential reversal play on the 1-hour time frame of EUR/JPY. The pair has formed a double bottom and appears to be breaking above the neckline to confirm that it’s done with the slide.
In that case, the pair could climb by roughly the same height as the chart pattern, which spans a little over a hundred pips.
The moving averages appear to be attempting a bullish crossover to indicate that buyers are regaining the upper hand. However, Stochastic is heading south from the overbought zone, so EUR/JPY might still follow suit.
EUR/AUD: 1-hour
Here’s another euro reversal setup!
EUR/AUD has already breached its neckline resistance as it gains traction on the uptrend. The 100 SMA even crossed above the 200 SMA to confirm that bullish momentum is picking up.
There could be room for a quick pullback, though, as Stochastic is on the move down to suggest that sellers have the upper hand. More buyers might be waiting at the broken neckline that could hold as support around 1.5740.
USD/CAD: 1-hour
Not a fan of the euro or of reversals? You might wanna check out this trend play on USD/CAD instead!
The pair is trending lower inside a descending channel on its 1-hour chart and is currently testing the resistance. If this is enough to keep gains in check, USD/CAD could slide back to the channel bottom at the 1.2550 minor psychological mark.
Stochastic is supporting this idea, as the oscillator is starting to turn lower from the overbought region. The moving averages are also hinting at a continuation of bearish pressure.
This post first appeared on babypips.com
