There was much anticipation for forex markets last week, but it appears that overall Central Banks have delivered a far more dovish outlook than most were expecting.

We’ve seen guidance shifts from the BOC, ECB, RBA and of course the FOMC. That has seen some big moves in markets and the poor US employment report on Friday really added to the pain for many.

To start the week, the USD will have a chance to redeem itself after Friday’s sell-off, thanks to retail sales data that is scheduled for release. Retailers have been under the pump and we didn’t see particularly strong sales during the traditionally profitable holiday period.

Both the stock market and the USD are particularly on edge at the moment, so we wouldn’t want to see a miss here or there will be a fair bit of potential downside ahead for both on Monday, with sentiment clearly turning negative at the moment.

Forex Signal Update

The FX Leaders Team finished with 9 winners out of 14 trades for a win rate of 64% in another solid week.

EUR/CHF – Active Signal

Our EUR/CHF continues to survive the EUR bearishness and will head into the new trading week alive and well. We have held on by a few of pips and will cleary need a bounce on Monday.

AUD/USD – Active Signal

The AUD/USD has run into a host of bearish data points and a dovish outlook from the RBA. The downtrend is getting strong by the day and we are looking for a test of the massive level at 0.7000.

Cryptocurrency Update

Bitcoin looks like it is doing its best to mount another charge at the $4,000 level.

Price had been holding around $3,800 after the last failed break of the round number level. There has been some positive news as I mentioned last week about Venezuela looking to incorporate Bitcoin and Litecoin into a plan to manage hyperinflation.

However, we will need to see significant buying here to lift this level in my opinion. The FX Leaders Team remain short BTC looking for more downside.