In this week’s Market Outlook we take a look at the #GBPUSD, #EURUSD, #GBPAUD and more!
Hi, and welcome to this Blueberry Markets video update with me, John Kibbler, Head Currency Analyst.
In this video, we’re going to go through the Forex Market Outlook. We’re gonna outline the currency strengths and weaknesses and look at some key charts to watch this week.
Strength and weakness chart
So, we’re gonna bring on the strength and weakness chart this week. We have seen that the GB Pound remained at its -5 levels, which still signifies a potential reversal set up forming.
The AU Dollar lost some value once again. It dropped from 7 to 5, which is -2. So, that’s what we’re looking at for a potential reversal setup in GBP/AUD.
EUR continued to gain to the upside. We’re expecting that to continue against the likes of EUR/AUD and EUR/JPY. The GB Pound also had that reversal, so I’m looking forward to looking at GBP/JPY as well.
The US Dollar remains flat according to the strength from weakness this week. We know that the price is more likely to continue losing some value as it is already weak.
Let’s just jump into the charts. The first one I want to look at is EUR because we’ve broken to the upside. The trend is now signifying that it is moving higher.
I’m expecting the price to retest the range this week. If the price does come and retest the range, we could be looking for some long opportunities on EUR/USD. This is in line with the strength and weakness chart.
I like this idea because the price also retested this resistance zone, where you can see we found support and resistance in the past. So, it’s a nice little area to watch EUR/USD in terms of a reversal. We then look for the pullback into the range highs and look for your continued long positions on EUR/USD.
GBP/USD is continuing to the upside. However, we just failed to make that higher high. So, it’ll be interesting to see if we get that on Monday. Look for that pullback and for a continuation to these highs.
I really do like that GB Pound upside because if you look at the chart, the GB Pound has changed cycle against the US Dollar. But, it hasn’t found that reversal yet, so the upside looks quite good for the GB Pound.
The AUD/USD strength continues. We’re now approaching another big zone here where the market is testing. Are we going to see the market break or bounce from this area?
The impulses could become quite shallow at this point. We could see a reversal set up coming, which is why we’re looking at GBP/AUD to the upside.
What I like about GBP/AUD is the fact that it’s oversold on the RSI. You can see the last couple of times that it did that, we saw the market follow through with a significant rally.
So, we’re looking for the same thing to happen here. I’ll be watching for the price to come and retest this zone and give us a nice bullish candle next week. That’ll give us the opportunity to go long if you’re looking for early opportunities.
The market is in range. You can see it on the four-hour timeframe. I need to see a change and a breakout higher of the range before looking for any long swing trading opportunities.
Another chart I quite like is GBP/JPY. It’s still making a move to the upside. We had a positive trade last week when the market rallied from the inside candle. I’m looking forward to this continuation.
Now, we are starting to break out of our highs there. If we can get a break and retest, I’ll be looking for a move like this with the market; the view of the market moving much higher.
So, it’s quite like the GB Pound against weaker currencies already. Keep an eye on GBP/JPY for some potential upside.
Keep an eye on the stock markets too. If it’s a bullish day, then it suggests that this could continue to the upside.
But the prices may ignore it, so we’ll be keeping an eye on the move as well. Ultimately, I like the fact that the EUR broke out of a range.
With the GB Pound, I’m quite happy to look for longs. The GBP/AUD looks decent as well, so keep an eye on those charts.
Enjoy low spreads and quick trade executions with a live account at Blueberry Markets. Our highly-committed customer support team will assist you from your quick account setup to any future concerns. Start trading with Blueberry Markets today.