In this week’s Market Outlook, we take a look at the key charts of the week with #AUDUSD, #NZDUSD, #EURUSD and more!
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For this week’s Forex Market Outlook, we’re going to focus a few currency pairs and their strengths and weaknesses to keep your eye on.
Strength and weakness chart
According to last week’s data, the two strongest currencies were the Australian Dollar and the New Zealand Dollar. While the weakest currencies were the Great British Pound and the US Dollar.
The strength and weakness table this week shows some significant changes to the AU Dollar and NZ Dollar. The two currencies were the strongest – forming new trends against weaker currencies. The GB Pound and the US Dollar were the weakest currencies of the week. The USD remains weak in line with the seasonal bias which could further lead to trends across the majors.
The US Dollar falling is in line with the seasonal analysis. The US Dollar typically does not perform very well through April. We can see that on the US Dollar Index.
The EUR/USD is trending to the upside, so that shows us that the US Dollar weakness is there.
I like the potential of the Aussie, New Zealand, and US Dollar trends to continue. I’m looking to trade the NZ Dollar against the GB Pound.
I’m also taking a look at Aussie versus the Canadian Dollar because the CA Dollar has been falling recently. It was strong, then it dropped completely. With the Aussie gaining strength, we could see some AUD/CAD upside as well.
The EUR dropped slightly on the strength of weakness. But if we expect the US Dollar weakness to continue, we should expect some further upside from EUR.
In our recent Forex Market Wrap, we identified that there were some opportunities for buying. The reason why we’re looking for buying opportunities is because we have a nice uptrend. We have the price making higher highs.
I’m expecting the price to pull back into a previous structure area – from the 1.1900 level.
Looking at the four-hour timeframe, the price should come back down into the most-traded level between 1. 1.1903 and 1.1898.
EUR/USD is an uptrend on the daily timeframe with the price forming higher highs and higher lows. If the trend continues, we could expect a pullback into the previous structure. The key level to watch would be the 1.1900 level. That was the most traded level within this consolidation and would likely be where buyers re-enter.
The 1.19 level is going to be the area I’m going to watch for buying opportunities.
Alternatively, if the US Dollar weakness continues, we could see a breakout in the four-hour timeframe to the upside. Just remember that we may not get a pullback here.
I like AUD/USD a lot because of the weekly timeframe. The market is in an uptrend. It went down to the lows and rejected it, then started to move higher. We also had a breakout of this weekly trend line resistance.
Adding all of these, it’s looking quite bullish for the AUD/USD. If this is going to be a phase in the weekly timeframe, we can see the daily timeframe making higher highs and higher lows.
AUD/USD has recently broken out of a weekly trendline resistance showing an impulse phase forming. If this forms, then we should see the daily timeframe making higher highs and higher lows.
If the price retraces back to the previous highs, then we could see a higher low form and a rally.
The market double bottomed, and now it’s making higher lows, and the higher high pattern. In theory, we should be looking for the price to pull back into the consolidation zone or the retracement phase and then a continuation of the AUD/USD prices in line with its strength and weakness.
Keep an eye on this. If you start seeing bullish price action, then it could be a trend continuation on the daily.
I like Kiwi because there’s a lot of strength coming from the NZD/USD.
The market is making higher highs. We are in a previous supply zone, and we also looked at buying the breakout last week, which worked out well.
NZD/USD also looks like it will trend higher. The price is currently retesting the supply zone which could start a retracement phase. If the market pulls back to the previous consolidation zone, then we could see buyers re-enter the market.
But now that we’re back in the supply zone, we could see a pullback before seeing that continuation up. This leads me on to GBP/NZD. I’m considering this because the GB Pound was the weakest currency last week and Kiwi was one of the strongest.
This market is making a downtrend where the daily is making lower lows and lower highs. Now, the market is pulling back, and we could anticipate a short-term move into this area.
We’re back in the supply zone and there’s a pullback before that continuation up.
If the price were to climb all the way back up to form a double top pattern or something like that on the four-hour timeframe, then we could expect further downside to this market.
GBP/NZD could be a chart to watch this week due to the strength and weakness of the currencies. The recent NZ Dollar strength formed a downtrend on this currency pair. The previous lows and volume level of 1.9497 could be where sellers re-enter.
AUD/CAD could be another market that could trend higher due to the strength and weakness. The market was in a tight trading range, but it broke out.
Now it’s making higher highs. The trend continues and there are a lot of buying from this point, so this could be a nice little demand zone just through here at 0.96.
If the price were to come back down to 0.96, then that could be a good opportunity to start looking for long opportunities.
AUD/CAD has recently broken out higher of a tight trading range. The CA Dollar has been getting weaker and weaker over the last couple of weeks which has led to this breakout. The price could retest the range and continue the trend higher.
So, keep an eye on these charts this week. These could be the ones that will be trending the most.
We hope our Forex Market Outlook analysis helps you in your trades this week. Practice trading the AUD/CAD, NZD/USD and EUR/USD pairs with free $50,000 funding when you sign up for a free demo account at Blueberry Markets.