The Week Ahead in FX (Mar. 2 – 6)

The Week Ahead in FX (Mar. 2 – 6)

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Start your trading prep with an overview of catalysts lined up for the major currencies and the charts to watch this week.
FX Week Ahead

Major Currencies Overview

forex guide

First up, here’s a rundown of how the major pairs performed in the past week:

Major Forex Pairs Price Performance
Major Forex Pairs Price Performance

USD

It’s NFP week once again! With that, the focus throughout the week could shift away from sentiment to leading jobs indicators ahead of the main employment report. Read more.

CAD

Canada is also scheduled to release its jobs report at the end of the week and another round of strong gains could douse BOC rate cut expectations. Read more.

EUR & CHF

There’s not much in the way of top-tier reports from both the euro zone and the franc, save for flash CPI readings and SNB foreign currency reserves. With that, risk sentiment could still be a big factor for these lower-yielding currencies. Read more.

GBP

The only economic reports due from the U.K. are the final manufacturing and services PMI readings from Markit, but the BOE Monetary Policy Report hearings might also be worth watching. Read more.

JPY

The coast is clear in terms of major economic reports from Japan this week, which could leave yen pairs extra sensitive to overall risk sentiment and counter currency price action.Read more.

AUD

It could be an exciting trading week for Aussie pairs as the RBA decision is coming up and a bunch of other top-tier catalysts, including the GDP and trade balance, are due. Read more.

  EUR/USD: plan for the European session on February 17, 2020 - Forex Alchemy

NZD

There are no major reports due from New Zealand this week, which could allow the Kiwi to take cues from the Aussie or major changes in market sentiment. Read more.

Charts to Watch:

EUR/GBP: Daily

EUR/GBP 4-hour Forex Chart
EUR/GBP Daily Forex Chart

First up is this potential reversal play on the daily time frame of EUR/GBP. The pair formed a double bottom pattern to signal that a long-term rally might be underway now that the neckline is broken.

However, the 100 SMA is safely below the 200 SMA to hint that the downtrend is more likely to resume than to reverse. The pair is breaking above the 100 SMA dynamic inflection point, though, so buyers could be gaining strength.

Stochastic is still pointing up but dipping into the overbought region to reflect exhaustion among buyers. Turning lower could draw selling pressure back in and push the pair back to the bottoms.

GBP/USD: 1-hour

GBP/USD 1-hour Forex Chart
GBP/USD 1-hour Forex Chart

Next up is this simple trend setup on the 1-hour chart of Cable. Price is bouncing off support and looks prime for a pullback to the top.

Applying the Fibonacci retracement tool reveals that the 61.8% level lines up with the channel resistance and is also near the 1.2900 major psychological mark. This is also near the dynamic inflection points at the moving averages.

The 100 SMA is below the 200 SMA for now to indicate that resistance levels are more likely to hold than to break. However, stochastic is pulling up to signal that bullish momentum might return from here.

USD/CAD: 4-hour

USD/CAD 1-hour Forex Chart
USD/CAD 4-hour Forex Chart

Here’s another trend setup for y’all!

USD/CAD has formed higher lows to move above a rising trend line on its 4-hour chart. Price looks ready for a pullback to this support area, and the Fibs show where buyers might be waiting.

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In particular, the 61.8% level coincides with the trend line and an area of interest at the 1.3300 major psychological support. Stochastic is just starting to reflect a return in selling pressure, but the 100 SMA is above the 200 SMA to hint that the uptrend is likely to carry on.

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