The #Forex Market Wrap is here!
Watch the video to learn what key levels have been hit this week!
Forex Market Wrap
In this week’s week ahead analysis we outlined there wasn’t much data to be released. The Wednesday US CPI data and Thursday AUD employment data were the two key releases of the week. The US CPI data came in above forecasts which caused the USD to strengthen as Inflation rose to 6.2%. AUD employment missed estimates with the unemployment rate rising, this could be an effect of the recent covid risks in Australia.
The USD index showed us that the USD was in an uptrend and would likely remain in one as the data out of the US continue to be positive. The CPI data coming in better than forecast pushed the USD Index above the weekly swing highs. Now the price has remained stable above these levels we could see the bullish trend remain. If the price retests the previous highs we can look for long opportunities.
The AUDUSD was on our watchlist for short opportunities this week as the strength meter outlined the Australian Dollar was losing strength and the USD was gaining momentum. Last week’s bearish close showed us that sellers were active in the market and that the 4hr bearish trend was likely to continue. The price did continue to fall in line with the outlook and in line with the 4hr trend offer multiple short opportunities.
The EURUSD fell in line with the USD Index rallying, this market looks set to continue to fall as long as the USD index remains bullish.
The price trading below the major support of 1.1500 could see fresh selling going into next week’s trading.
Gold prices rallied significantly this week after inflation rose in the US. Gold prices usually rally as a hedge against inflation and this recent breakout is proof. Looking at it technically we can see that the price has burst through key resistance levels including a higher time frame trendline resistance. If inflation continues to rise in the US we could see Gold price trade much higher before the end of the year.
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