FOREX MARKET WRAP: 22nd Jan
The #Forex Market Wrap is here!
Follow the link to learn what key levels have been hit this week!
#forextrading #forexblog #blueberrymarkets #blueberryjam
Hi guys, welcome to today’s Forex Market Wrap video with me, John Kibbler, Head Currency Analyst here at Blueberry Markets.
Practice trading with a demo account
I’m going to look at these markets and see how they perform from the Forex Market Outlook video.
First off, we’re going to start with EUR/USD. We’re looking for a short opportunity around 1.2154. The price came up, give us a nice rejection, here, and if you went down on the lower timeframes to look for some trading opportunities, the price fell nicely to the downside, retested this structure area, down here, and has bounced since then. The market’s retesting that level on a bit of a break and retest. The move here may not be made on EUR. We might get another punch to the upside. I’m still looking for that US Dollar strength to get involved, and we started to see a little bit of it. We saw that last week, but this week it’s completely overturned. US President Joe Biden’s inauguration happened this week, so I don’t know whether that has given us a little bit of some US Dollar weakness going through the week. Still, pretty much ever since that day happened, we’ve seen the US Dollar weakness continue.
I’m still looking for some potential EUR downside. I still like the EUR downside.
One particular market we looked at was EUR/JPY around 126.12. The price came back into that level, rejected nicely, and moved lovely to the downside, then back to some structure areas down here. If you banked the trade there, you would have done very well. The price has come back up again and broken through. We’ve got a little bit cautious of trading EUR short at the minute now because we see some changes in trends. But essentially, the market can be tested that key level of interest and fall nicely to the downside.
Kiwi was another one that we liked the look of. Kiwi went a little bit higher than I anticipated. I didn’t expect the price to break through this area of 0.7183. However, when we looked at NZD/CAD for a long opportunity, the market looked like it wasn’t going to stall at this point. It tried to, initially, and then the trend continued to break it through. Again, the price came into it then rallied away from it. It wasn’t what we wanted to start looking for short opportunities, unfortunately. Even though Kiwi has been quite weak for a while, we expected the pullback but not quite as deep a retracement through here.
We’ll have to assess again what the strength and weakness suggest next week.
The daily chart’s looking okay. It’s coming back up into this level, rejecting, looking like a bearish close is what we’re going to see today. We could look for some downside next week. But we’ll look at the strength and weakness analysis in the Forex Market Outlook, and we’ll see how Kiwi stands then.
Speaking of Kiwi, we looked at buying NZD/CAD from this area; this was a nice little move through here. The market came back down and retested this double bottom.
Originally, in the Forex Market Outlook video, we were looking to get short, and we were looking to get short around 9125. However, the price kept falling throughout the start of the week into this support point. What I noticed were these very low ranging candlesticks. Typically, when you see a low range in candlesticks, the market is about to impulse in a specific direction. In this case, we were finding these low ranging candlesticks at an area of support, and this suggested that we could see a rally up because we were looking to get short around this zone. It made sense to look for that as a perfect target around this area because we have resistance, resistance, support, support, and resistance. When we look to buy, we’re looking to buy back up into this 9125. And again, we’ll have to assess how the market sees this area next week because we’re starting to see some bullishness coming back into the market and some more risk-on sentiment. But, the levels pointed out this week were pretty good.
One level that we did look at as well is EUR/CAD. We didn’t get triggered into this move. Unfortunately, the price continued to the upside. We were looking for one more continuation of this downtrend, but we didn’t end up getting involved with the move, and the price has eventually moved to the upside. Again, the weekly’s coming to a key point. I expected a little more downside, but this isn’t looking like we should continue to get short. The CA Dollar has weakened quite a bit against the strength and weakness analysis heading towards going into this week.
It would be interesting to see how the CA Dollar shapes up, but we can sit here now, and we can cancel this move because we don’t need to be involved with it.
I hope you enjoyed the content this week. If you have any suggestions of what you want to see, let me know in the comment section below, and I’ll soon speak to you.
You can practice trading EUR/CAD or NAZD/CAD by opening a free demo account. If you’ve already signed up, you can get into the trading game for as little as $100 funding in your account.