ภาษาไทย
Tiếng Việt
The Forex Market Wrap is here!
Watch the video to learn what key levels have been hit this week!
Forex Market Wrap
The market volatility was high this week as we have had central bank rate decisions as well as speeches from key central bank leaders. This week was also closed out by the Non-Farm Payroll data.
The RBA first hiked interest rates from 3.35% to 3.60%, this was priced in by the market and the Australian Dollar weakened. The RBA Governor Lowe stated that a pause in interest rates is getting closer. However, the Governor was surrounded in controversy this week as reports circulated that he received taxpayers subsidies on a mortgage for a five bed property.
In other central bank news the Bank of Canada left rates unchanged as expected. The central bank believes rates are now high enough to impact the inflation rates. This is the opposite of the Federal Reserve which could cause the USDCAD price to be greatly affected.
All eyes however, were focused on the Federal Reserve Chairman Jerome Powell, as he testified in front of congress. Powell’s comments on Tuesday caused the USD to strengthen aggressively. The US central bank leader discussed the potential to hike rates at a faster pace to combat the recent strong data. The following day Powell tried to back track his comments not to cause further USD strength.
The Non-Farm Payroll data missed expectations with the employment figure coming in at 311k above the estimated 224k. However, the average hourly earnings dropped from 0.3% to 0.2%. The unemployment rate also rose to 3.6% which helped the USD weaken.
EURUSD
The price on the chart has traded through multiple technical levels and some observations included:
- Price remained range bound this week as the market remained undecided on USD strength or weakness.
- We identified the 1.0500 level as a potential area of support this week. The price came very close to testing this support before reversing back to the recent highs of 1.0700.
- If the USD weakness is going to remain we could see the price of EURUSD trade through the highs into 1.0775.
GBPUSD
The price on the chart has traded through multiple technical levels and some observations included:
- Price traded through the key lows of 1.1925.
- The support of 1.1850 we highlighted in the week ahead analysis video was used as support.
- Price has since rallied back into this range and towards the key highs at 1.2125.
USDJPY
The price on the chart has traded through multiple technical levels and some observations included:
- Price rallied into the key resistance level of 137.75 this week as expected.
- This resistance level was met with sellers.
- The NFP data caused the price to trade back to the 134.50 handle. If price can remain above this level we could see the price trade back higher.
GOLD
The price on the chart has traded through multiple technical levels and some observations included:
- Price traded within a range between $1805.00 and $1850.00.
- The NFP data helped the price of Gold move higher.
- If the USD is going to continue to weaken, we could see a move to $1875.00.
Have you watched our USDJPY analysis? You can see it here.
Enjoy low spreads and quick trade executions with a live account. Our highly committed customer support team will assist you with your quick account setup for any future concerns. Start trading with Blueberry Markets today.
About The Author
