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In today’s Forex Market Wrap, we’re going to see what happened to the markets we looked at in this week’s Forex Market Outlook and what we can expect next week.
The US Dollar continued to sell-off. We had a bit of US Dollar buying in the middle of the week, but the start and end of the week were bearish.
So, the Monday candle was bullish, then we had three bearish days and then it looks like we’re getting more bullishness towards the end of the week. That will make for another strong bullish candlestick on the weekly timeframe for EUR/USD.
Maybe we’ll get one more week of US Dollar bearishness because it usually is until the end of April. But then, it may completely flip and become strong.
What we may anticipate the market to continue up then trade back down towards previous levels. Next week will be interesting if that plays out to those lows in line with the seasonal period.
EUR/USD formed another bullish week as the USD weakened further. This will end soon as the USD reports it’s strongest month through May. This could mean we have one more week of USD bearishness until we see a reversal. If the price forms a bearish close next week, then we could see a move back towards the recent lows.
With Aussie, we talked about its potential to pull back lower. Instead, the price consolidated.
AUD/USD was expected to move higher this week as it was one of the strongest currencies. However, that wasn’t the case last week. The price ended up consolidating within a tight trading range. This could be a sign of what is to come, with a potential reversal forming. The weekly candle looks to be forming a bearish Doji, showing us that buyers could be fading.
Our original plan was to look for the price to pull back down into this consolidation area. Instead, we remained in this consolidation. So, it’s just like what happened with EUR/USD.
In the weekly timeframe, we’re forming a bearish Doji candlestick. We also spoke about the potential for the market to form a head and shoulders pattern.
Could we see another move down on Aussie?
Everything’s shaping up for US Dollar strength to come back into the markets towards the end of the month.
So, it will be interesting to see if we do get that breakdown in AUD/NZD as well.
We spoke about the NZD/USD, and we were expecting a pullback.
We then did another video in the same week, talking about the four-hour timeframe and the nice supply zone. So, we were expecting one more move into this area before seeing the sell-off. But, it doesn’t look like we’re going to get that.
I’ll be watching for the price to start making lower lows. We tried to push lower. It hasn’t worked out yet, but the key low will be down at 0.7122.
If the price breaks 7022 and trades below it, then I’d expect some downside from NZD/USD.
So, it would be interesting to see the strength and weakness next week. If not, I want the price rally up into that supply zone and see a reversal.
NZD/USD also consolidated this week, highlighting the potential for this market to reverse. Retail reports show that retail traders are getting long at these levels. This gives us an idea that the price will likely fall. The supply zone at 0.7250 would be an ideal level for sellers to re-enter the market. Alternatively, if the lows at 0.7122 sees the price break below, then we could see a reversal to the trend.
We spoke about the potential for the market to go back up and reverse. That’s exactly what happened this week, combining the strength and weakness on the charts.
We also spoke about the potential for a reversal, where we said to look at your bearish patterns.
GBP/NZD was featured in our Forex Market Outlook this week for short opportunities at the key high volume zone. This market followed the analysis well this week. However, if the NZD weakens, then this downtrend may be short-lived.
In the four-hour timeframe, the price went back up to our area of interest, rejected it, then trended nicely.
If you managed to catch that move, then that was a really nice one. Again, we’ll check out the strength and weakness of the currencies for the Forex Market Outlook next week.
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