The Forex Market Wrap is here!
Watch the video to learn what key levels have been hit this week!
FOREX Market Wrap Analysis
The market remained volatile this week despite a lack of high impact data. The only key data we saw this week was inflation out of the US. It showed a further increase in the rate of inflation through April even if it has decreased from the month prior the USD continued to strengthen. Unemployment claims rose in the US but this was to be expected as the Federal Reserve began to hike rates.
In other news crypto markets dropped drastically in some cases with Terra Luna, a popular project that lost over 98% of its value. Bitcoin and Ethereum also fell with Bitcoin dropping below the $25k level which would scare some people out of the market.
The GBPUSD price continued to fall this week as the USD strengthened with price heading for the major 1.2200 level. The price of the pair has however stalled and if we were to see a reversal from here we could see the price head back to the 1.24000 level. As the price continues lower institutions will be more interested in getting involved as they can build a larger position.
The AUDUSD price was on our watch list this week for further short opportunities as the price approached the key 0.7000. This level was found fairly quickly this week with price breaking and retesting offering further short trading opportunities. The strength meter shows the Australian Dollar getting weaker which looks set to continue in the short term.
The EURAUD price was one to watch for long opportunities this week and the price made an early move and broke into new highs. This trend looks likely to continue if the price can retest the key lows and find further demand. The risk off in the market could be key for this trend to move higher with stocks currently under pressure the risk assets like the Australian Dollar could be affected.
The stock markets continued to decline this week adding to the risk off sentiment in the market. The price has approached another major level of support and has seen a short term rebound. If the price is to reverse here we would need to see a swing in the sentiment and the 4hr trend. The price breaking through the previous swing highs could suggest that buyers are adding positions which could lead to a trend reversal.
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