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Hi, 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 take you through the Forex Market Wrap, we’re going to look at what those key levels of the currencies have come to, and if there’s anything for us to potentially set up for next week.
It has not been the most eventful week, again. Not seeing much development from the charts as we could see, here. The US Dollar has continued to remain range-bound.
It’s important to note that it is a US holiday or a bank holiday today, I should say. That doesn’t feel like there will be much action on the charts today, but essentially, the market has remained range-bound on the US Dollar Index. We did get a bit of a boost to the US Dollar yesterday after the jobs numbers came out. But ultimately, the price is remaining trapped within this 97.70 and 95.96 area. I was looking for a bit of a trend to come from the US Dollar. I haven’t found it yet. I’m still waiting.
EUR/USD is pretty much a mirror image. Nothing changed here, for me. It’s like we were getting a few mixed messages: we were getting some spikes down, then a nice daily bearish close yesterday. Nothing is happening on EUR.
When the markets are in these range-bound environments, that is not the most ideal for us. We need to wait for some breakout. We can wait for a couple of things like a trend line break out here or even a breakout to the downside of these lows. We could either wait for the market to break out here, pullback, continue or breakout below, and continue down from there. It depends on the US Dollar if it is going to get stronger or weaker. But yes, yet to be seen as of now.
The GB Pound is very much the same. However, this one was one of the markets that was trending. It came back down into these lows, here in this supporting zone, and bounced from there, or you could even look at the supporting zone, through here. There’s a little bit of a better zone with the market breaking out, finding resistance, support, and retest. The market has rallied ever since, low ranging candles, and not much action going on today, as I said.
Again, I’m going to wait until next week and see what happens. Are we going to start seeing the GB Pound break to the upside? That’ll be super interesting to see. A lot of the GB Pound pairs are starting to change cycles. I imagine the strength and weakness table would show the GB Pound gaining some strength. We’ll take a look at that in the Forex Market Outlook video. But, if that’s the case, we may see a little bit of a breakout here on the GB Pound next week.
Aussie remains the same as well. Nothing is going on here. The market remains trapped; it remains a bit range-bound between these two areas. The market came down, found support at this zone here, and it has remained the same ever since. Once again, all we can do in the range-bound environments is sit and wait for one or two eventualities: either a breakout of the high or a breakout to the downside. Be aware of that.
The only chart that I like is Kiwi. Kiwi has probably been the strongest currency of this week. This buying opportunity, here, still feels like the market could continue to rally to the upside. I like this because the market was consolidating here, it came back, retested that support, and bounced up. I was also short on EUR/NZD, which is what we’d like to see as well. The market is still pushing to the upside here for us on Kiwi. We’re expecting that market again, if we get that breakout, that would be great, and we could maybe look for some extensions to the upside or maybe some extra long opportunities here.
I am going to USD/CAD. Again, not a lot to talk about here, but it remains to the downside. Same with USD/JPY and USD/CHF, very much range-bound.
We are still short on EUR/NZD and CAD/JPY.
CAD/JPY is fumbling around a little bit. I would have liked to have seen it create a higher low on the four-hour, but it’s trapped here at the moment. It looks to me like we even could get another breakout. So, maybe reduce stop losses to above these highs, here. Maybe, something to look at, but essentially at the moment, I’m still holding that one.
With EUR/NZD, we probably hit the target. I haven’t looked at that yet. But the price has pushed to the downside, pretty much at those targets. If this continues to break to the downside, then I expect the trend to continue. We have to assume the trend continues. We’re getting nice lower lows and lower highs. Maybe, we could get a pullback continuation move from there. We could see some further downside from EUR/NZD. But, Kiwi is very much the stronger currency. I’m expecting that to continue next week.
So, I’m going to leave it there. I’m sorry if it’s a short one, there’s not much going on in the market at the moment. But I hope you enjoyed the content this week. If you did, please give it a thumbs-up, and subscribe to the YouTube channel if you want to see some more trading content. Thanks for watching. See you next week.
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