The #Forex Market Wrap is here!
Watch the video to learn what key levels have been hit this week!
Forex Market Wrap Analysis
This week we were expecting the growing tensions between Russia and Ukraine to continue but that was not to be the case. Instead we saw the tensions fade throughout the week leading to more risk on the market. This saw the risk currencies such as the AUD and NZD strengthen and the USD weaken. Some breaking news before the close shows us that the risk off could be about to re-enter.
The strength meter this week highlighted the potential reversal for the New Zealand Dollar which did happen against weaker currencies offering us long opportunities.
The USD index remained fairly range bound this week as the market battle between the headline risk and the risk on sentiment. With the recent breaking news we could see the risk off sentiment come back into the market and the USD index could head back towards $97.00.
In times of uncertainty the AUDUSD price can fall which is what we were expecting at the start of this week. This didn’t happen in the end and the price rallied higher but the price couldn’t break out of last week’s range. This shows uncertainty is still there in the market and that we could still see a move lower.
Much like AUDUSD the AUDJPY price reacts to the risk sentiment in the market and similarly because of the tensions fading between Ukraine and Russia the market was more positive and the price moved higher. However, like AUDUSD the price traded within last week’s price action and shows uncertainty remains within the market.
The price of Gold continued to move higher which shows that the risk on sentiment we saw this week could be short lived. The price of Gold typically rallies in times of uncertainty and this continues showing that the risk is still there. If this trend continues we should see some more buying opportunities now the price has broken out of the major consolidation pattern.
Did you see our recent analysis? you can find it here.
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