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 closed another week mostly in the red, as risk-taking overshadowed the pickup in U.S. inflation and rate hike speculations.
There are no major reports due from the U.S. economy this week, so dollar traders might continue to take cues from overall sentiment. Fed head Powell’s speech could be worth watching, too! Read more.
CAD
It was a choppy week for the Loonie, as the currency tossed and turned to risk sentiment, downbeat data from Canada, and rising crude oil prices.
There are no economic releases from the Canadian economy this week, so it could boil down to risk appetite and oil price action once more. Read more.
EUR & CHF
Traders showed no love for the euro and franc in the past week, as risk-taking was the name of the game and the slow vaccine rollout was also a concern.
A couple of leading indicators are due from Germany while Switzerland has its KOF economic barometer lined up, but the focus could stay on pandemic-related updates. Read more.
GBP
Sterling soared to the top of the forex charts thanks mostly to the successful U.K. vaccination program and relatively upbeat BOE commentary.
Only the jobs report is due from the U.K. economy this week, but the focus could still stay on the vaccine rollout. Read more.
JPY
The yen found itself on the losers’ bench as risk-on flows favored higher-yielding currencies while safe-havens were dumped.
It’s another empty economic schedule for Japan, which could leave yen pairs sensitive to overall market sentiment again. Read more.
AUD
The Aussie was top dog once more, as risk appetite surged and the Land Down Under printed positive economic data.
A handful of mid-tier releases are coming up, but these are quarterly releases so there might still be a lot of volatility in the cards. Read more.
NZD
Despite the relatively uneventful week, the Kiwi still managed to chalk up an impressive run against its forex peers as risk-on flows were in play.
There’s plenty of top-tier events from New Zealand to look out for, including the highly-anticipated RBNZ decision. Read more.
Forex Charts to Watch:
GBP/USD: 1-hour
Divergence alert!
Cable is cruising higher inside a rising channel on the 1-hour time frame and is currently testing the resistance, possibly priming for a counter trend move.
Price formed higher highs while Stochastic made lower highs, creating a bearish divergence that could draw sellers back in. If so, the pair could retreat to nearby support levels at the channel bottom or the mid-channel area of interest.
The 100 SMA is above the 200 SMA, though, so there’s still a chance that GBP/USD could bust through the channel top. In that case, a steeper climb might follow!
EUR/CAD: 4-hour
EUR/CAD is sitting right at the bottom of its descending triangle on the 4-hour time frame, still deciding whether to make a bounce or a break.
A bounce could take it back to the triangle top around the 1.5400 major psychological mark while a break lower could set off a drop that’s at least the same height as the triangle pattern.
Note that the 100 SMA is below the 200 SMA to hint that the path of least resistance is to the downside, tilting the odds in favor of the bears.
GBP/CAD: Daily
Bounce or break? GBP/CAD is at the very top of its long-term range and might be due to a move back to the bottom.
After all, Stochastic is already in the overbought region to reflect exhaustion among buyers and a likely return in selling pressure.
However, the 100 SMA just made a bullish crossover to hint that buyers have the upper hand. Note that the range is roughly 900 pips tall, so the resulting breakout could be of the same height!
