The #ForexMarketWrap is here!
Follow the link to learn what key levels have been hit this week!
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Hi, and welcome to this Blueberry Markets video update with me, John Kibbler, Head Currency Analyst.
In this video, I’m going to take you through the Forex Market Wrap and show you the levels that have been tested this week.
So, going through EUR/USD first. We spoke about a couple of different levels we wanted to see tested this week. The first one is around 1960.
I wanted to see the price come and retest this previous structure low, and we highlighted the 1.2 level as well, which was also this most recent swing low. I wanted to see the price reverse because we had this nice impulse move the week prior. We’re looking for overall targets to be around 1.1830s from this weekly pullback. Now, the price is trending to the downside. I was looking for areas for that trend to continue.
Now, we started to see this daily bearish candlestick form today. If it closes the way it is, then we could see some further downside to EUR/USD next week.
If we go down that four-hour timeframe, we can see that the market has begun to change trend.
Ideally, we’d like to see a lower high form on the four-hour timeframe for some further downside.
We started to see a slight change in trend: early changes in the trend with regards to this trend line, a nice little break of the trend line there. So, I’m looking for some potential downside to come in EUR/USD.
But this week, it hit those key levels that we talked about. Let’s see if that follows through next week.
The GB Pound went higher than we anticipated. Just looking at the four-hour timeframe, we expected the price to find some resistance up at 1.3910 this week since the strength and weakness highlighted that the GB Pound was at the top. It shows us that the GB Pound is still strong but could potentially reverse.
We’ve started to see that four-hour uptrend, which is the daily retracement phase. Now that we started to see a breakout of that move then break back below 1.3910, I’d expect the market to start moving down again towards 1.3750.
We didn’t quite catch this area where I was hoping to have a false breakout and some downside from this point. That’s why it’s essential to look at those daily closes and identify the market’s potential once we get back to these resistance levels. If we don’t get a bearish daily close, then it’s more likely that it will continue to the next day, to the next resistance point.
Aussie was another one that we spoke about. Another couple of key levels that we talked about was about 0.77 and 0.770. If the US Dollar strength were going to continue this week, we would see potential sellers coming back to this level.
Now, the only problem with that is the market changed cycle again, which shows us that there is a retracement phase occurring. Price then went up to the next level of resistance, 0.7770, which we liked because of all this resistance and support that we’ve seen recently. And again, the market’s starting to change cycle around this area.
Suppose we could see a lower high coming into the four-hour timeframe. In that case, it’d be good to look for shorting opportunities off the back of that.
NZD/USD was another market that we liked the look of because of its strength and weakness. Look at this daily chart following the daily timeframe, the market is making lower lows and lower highs.
We’ve come back into the key structure area now. We’re starting to see those sellers re-enter the market. And we’ve got longer-term targets on Kiwi down towards 0.7. So, I’m expecting this market to continue.
Also, the four-hour is starting to change trend again. So, looking for some lower highs on the four-hour timeframes will give us some good opportunities next week.
One chart that we did tell you to keep an eye on was NZD/CAD. We discussed the 0.9120 zones, these daily structure lows here.
We spoke about the market changing the trend on the daily timeframe after breaking out of this channel, up here, and said that it would be a nice opportunity if the price could come back into those lows to short.
So, hopefully, you set some alerts at that point because the price literally tapped into the level, then broke to the downside quite considerably here.
Again, that was all due to the sentiment data and the strength data that we looked at this week. We saw that the Kiwi was starting to lose some value, while the CA dollar was strong alongside the US Dollar. That’s why we compare these two together.
The daily timeframe, a changing trend, comes back into resistance. And now, we’re starting to see that the selling pressure is coming through this market now.
I’ll leave it there, guys. I hope you enjoyed the videos this week. I hope you learned a lot. Thanks for watching the video updates, and I’ll speak to you in the next one.
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