FOREX MARKET WRAP: 18th September
Hi, and welcome to this Blueberry Markets video update with me, John Kibbler, head currency analyst.
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In this video, we’re going to go through the Forex Market Wrap. We’re going to go through the currency strengths and weaknesses of the week. Essentially, what kind of happened.
First of all, I’m just going to show you my heat map. This is something that I’ve developed myself. It allows me to kind of focus on specific pairs. You may have seen it in the past, but essentially, what we were focusing on was a lot of CAD weakness this week, also a little bit of gain in the US Dollar.
Now, it didn’t quite see that gain in the Dollar that we wanted to see. You can see that by how the major currency pairs have shaped up here. In regards to the fact that we’ve been looking for those bullish days on the Dollar index. We had maybe one possibly two potential days of bullishness, and the rest have been pretty weak. We can see that from even the Euro’s standpoint. We had a couple of days here where the Dollar was a little bit stronger than the Euro.
The Pound completely wiped the floor with the US Dollar, as well as the Kiwi Dollar. So, we were looking for some breakdowns, especially on the Aussie Dollar. We looked at the breakdown on Aussie, which we’re still in at the moment. But, again we looked at it after we saw this kind of potential reversal day setting up. Unfortunately for us, the market’s just kind of hovered. It hasn’t followed through yet with what we want to see.
But other markets played out well. So AUD/JPY for instance, was on my list to go short this week. It did very well. CAD/CHF and CAD/JPY also, Yen pairs getting strong, and this is where we looked at some other pairs. We looked at NZD/CAD in particular as a market that we could continue to buy. Unfortunately for us, it didn’t trigger the pullback we were looking for. But if you look at the days, it’s just continued to be better bullish back up into this key-resistance zone that we’ve pointed out at the start of the week in the Forex Market Outlook.
Looking at a weekly nice bullish move. Looking at the four-hour just hasn’t quite given us what we particularly wanted to see, which was a little bit of a pullback into here, didn’t get that move in particular. The market did come back down and re-test an area of support and rallied again. But didn’t quite get that entry that we were specifically looking for.
But other than that, the four-hour trend did continue to the upside. If you look at the hourly, would it give you some nice trend opportunities off of the averages even down on sort of the 15-minute time frame, you’d have had some good moves off the averages as well. So NZD/CAD very much wanted one that we wanted to watch this week and performed very much as the strength and weakness suggested.
AUD/JPY was also broken down pretty nicely as well. If you had stuck to kind of the four-hour time frames here, there was a particularly great entry just off of these lows through there., If you again kind of look to the lower time frame for entry, there were some decent shorting opportunities this week especially, I quite like this move in here, where we had this almost head and shoulders pattern on the 15-minute time frame, and the price dropped to the downside there.
It was a pretty great move, and other than that, AUD/JPY looking to drop to the downside, and that kind of coincides with some bearishness. That bearishness that we have been seeing on the stock markets lately. Other than that, we were looking for that Dollar bias as we said. So we looked at last night, maybe a break at this low on Pound that hasn’t followed through. So, I’m just going to delete that order. Now, as pointless having that over the weekend.
Aussie was one that we looked at as well. It didn’t quite work out the way I was expecting it to in terms of we had this breakdown here. I was expecting this to reject and push to the downside. But obviously, the markets are random, they’re not going to do what we want it to do, but they’re going to play out how they want to play out. The market did kind of move a little bit higher. It’s still heading in the right direction though, so I’m still happy to sort of hold this the daily timeframe, it looks really good to me for some downside. So, happy with that one.
USD/CHF again, just about coming into that area. We were speaking about this level yesterday. Then it could react around here, looks like it has, so still sitting in this one. Fortunately, see if we need to see that Dollar kind of give us a real good push. The same with USD/CAD and still hovering in this area, waiting for that break out to the upside, still waiting for that 133 level to be tested. So, keep an eye on this. I think the Dollar is going to make its move. We just need to be super patient with it and see if we can.
But CAD weakness was the call this week really, and it has performed pretty well. I mean, even if we take into consideration CAD/JPY, for instance, if you did look at that market. If I bring CAD/JPY in– let- me just try and find out on the side, here we go. So even if we look at CAD/JPY this week, look at that downside, really good downside. There, a four-hour trend, very nice on this week market, making very nice lower lows, and lower highs. Putting back into key-areas of structure just through there, continuing its move down.
So CAD/JPY looks very bearish, and if you go to a weekly expecting that to continue and follow through as well. So, keep an eye on this one. We’ll look at that in the Forex Market Outlook.
I hope to see you in that video as well. I hope to see you’re watching that one as well. I hope you’ve had a great week trading. Enjoy your weekend, and I’ll speak to you very soon.
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