Start your trading prep with a review of last week’s price action and an overview of catalysts coming up.
Take a look at how the majors performed recently and the upcoming catalysts to watch out for:
Major FX Pairs Overview
USD
Dollar bears painted the town red on account of mostly downbeat U.S. data and a worsening pandemic situation last week.
This time, traders might be keen on closing out positions early ahead of the Thanksgiving holidays, which come right after a set of major economic catalysts. Read more.
CAD
It was a choppy trading week for the Loonie as positive data from Canada and higher oil prices were outweighed by risk-off flows.
There are no major reports due from the Great White North this time, so commodity price action and market sentiment could push the Loonie around. Read more.
EUR & CHF
Expectations of further easing from the ECB dragged the euro south throughout the week, along with speculations of prolonged lockdowns.
Flash manufacturing and services PMI readings are lined up from the eurozone early in the week while the franc could take cues from risk appetite. Read more.
GBP
Sterling had a rough start to the previous week but staged a strong comeback on hopes that a Brexit deal could be finalized soon.
Officials will continue talks this week and an actual agreement could bring a relief rally for pound pairs. Do watch out for flash U.K. PMIs still! Read more.
JPY
The yen almost took the top spot last week as risk-off flows were in play, losing out only to the New Zealand dollar.
There are no major catalysts scheduled from Japan this time, so the yen could keep taking directional clues from overall sentiment. Read more.
AUD
The Aussie chalked up a mixed performance, which was still pretty impressive given how risk aversion was in play for the most part of the previous week.
Only a few mid-tier reports are due from the Land Down Under this time, so the Aussie could be pushed around by risk-related flows for the next few days. Read more.
NZD
The higher-yielding Kiwi soared to the top spot last week, shrugging off risk aversion on account of mostly positive developments in New Zealand.
The lack of major updates could make it challenging for the Kiwi to hold on to its strong gains, although counter currency weakness could still keep the currency bid. Read more.
Forex Charts to Watch:
GBP/AUD: 4-hour
First up is this potential reversal setup on GBP/AUD yo!
The pair seems to be done with its climb as it forms a head and shoulders pattern on the 4-hour time frame. Price has yet to break below the neckline at the 1.8000 handle to confirm that a downtrend is in the cards.
If that happens, GBP/AUD could be in for a slide that’s at least the same height as the chart formation, which spans 500 pips. A bounce off the neckline support, however, could lead to a rally back to the 1.8500 highs.
Bears seem to have the upper hand as the 100 SMA crossed below the 200 SMA while Stochastic is already heading south.
GBP/NZD: 4-hour
Here’s another potential swing setup on a pound pair!
GBP/NZD formed lower highs and found support at the 1.9100 major psychological mark, creating a descending triangle on its 4-hour chart.
The pair is currently hanging out at the bottom of the triangle, still deciding whether to make a bounce or break from the support area. A breakdown could set off a slide that’s the same height as the triangle or around 900 pips.
Moving averages suggest that the path of least resistance is to the downside, but Stochastic is starting to pull higher to hint at a return in bullish pressure. In that case, a bounce back to the triangle top near 1.9500 is possible.
NZD/CHF: Daily
Not a fan of the pound? You might wanna take a look at this long-term play on NZD/CHF instead!
The pair just busted through a descending trend line on its daily time frame, suggesting that a major reversal from the downtrend is due.
The 100 SMA also made a bullish crossover to confirm that buyers are gaining the upper hand. Stochastic is already in the overbought zone, though, so a quick pullback could be needed to draw more bullish energy.
