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
It’s bound to be an eventful week for USD pairs as the advance U.S. Q3 GDP reading is up for release, and many are hoping to see an impressive rebound. Read more.
CAD
The Loonie has been taking cues from market sentiment and crude oil price action lately, but the focus could shift back to fundamentals and monetary policy as the BOC gears up for its statement. Read more.
EUR & CHF
The ECB could shake things up for the shared currency this week, along with a bunch of other mid-tier reports lined up from the region.
Meanwhile, the lack of major catalysts from Switzerland could keep the franc sensitive to risk sentiment. Read more.
GBP
There are no major reports due from the U.K. economy in the coming days, so traders might keep extra close tabs on Brexit-related developments to decide where to take pound pairs next. Read more.
JPY
Risk sentiment has been the name of the game for the lower-yielding yen in the past few weeks, but the attention could turn to the BOJ as they announce their policy decision soon. Read more.
AUD
Inflation reports are lined up from the Land Down Under this week, and analysts are counting on a strong rebound that might influence the RBA decision in the following week. Read more.
NZD
The lack of major reports from New Zealand this week could leave its currency vulnerable to risk flows or counter currency action. Read more.
Forex Charts to Watch:
USD/JPY: 4-hour
First up is this textbook break-and-retest situation on the 4-hour time frame of USD/JPY.
The pair previously tumbled below the floor around the 105.00 major psychological mark and is gearing up for a pullback to this former support.
Sellers might be waiting to join in the drop at this area of interest since it’s right around the 50% Fibonacci retracement level. A larger pullback could last until the 61.8% Fib or the dynamic resistance at the moving averages.
The 100 SMA is still above the 200 SMA, but the gap is pretty narrow so a bearish crossover is possible. Stochastic is heading up to indicate that the correction is still going on, but the oscillator is closing in on the overbought zone to show exhaustion.
GBP/JPY: 4-hour
Reversal alert!
Guppy made a couple of failed attempts to break past the the 138.00 area, creating a double top pattern on its 4-hour chart.
A break below the neckline around 135.50 could be enough to confirm that a downtrend of the same height as the chart pattern is due, but Stochastic is suggesting that sellers could use a break.
At the same time, the 100 SMA is safely above the 200 SMA to signal that the path of least resistance is to the upside or that support is more likely to hold than to break. In that case, another bounce to the 138.00 handle could be possible!
NZD/USD: 4-hour
Who’s up for a countertrend play?
NZD/USD has formed higher lows and higher highs to trend inside a rising channel on its 4-hour chart. Price is currently testing the top of the channel, which might keep gains in check.
If so, the pair could retreat to the channel bottom around .6600 or at least until the mid-channel area of interest around .6640 and the moving averages. The 100 SMA is below the 200 SMA, hinting that resistance is likely to hold.
Stochastic is also starting to head south from the overbought zone to indicate that sellers are taking over while buyers are taking a break.
