The Forex Market Wrap is here!
Watch the video to learn what key levels have been hit this week!
Forex Market Wrap Analysis
In the news this week investors were watching out for the FOMC meeting minutes to see if Jerome Powell gave anything away for their next meeting. The meeting minutes saw the Federal Reserve Chairman state that ‘recent hikes have had little effect on inflation’, this statement would suggest the Fed may hike more than 50bps in their next meeting. In other central bank news the RBNZ raised interest rates by 50bps to 3.00%, this saw the NZD weaken as the move was likely priced in by the markets.
The EURUSD price fell this week as the USD continued to strengthen. The price broke below the weekly VAL on Monday setting the standard for the week. When the price breaks through a value area low or high we can often see the price continue in that direction. Looking at the US Session volume profile we can see the price reacting from the key levels everyday offering short trading opportunities.
The USDJPY was expected to move higher this week as we looked for the recent weekly gap in volume to be filled which formed after the US CPI data. The price filled the gap and continued to trade higher towards the untested weekly point of control. The strength meter this week showed the JPY was the strongest currency but in a reversal zone, this can often see the currency reverse in strength against stronger currencies.
NZDJPY this week didn’t move as we expected as the price fell on the open ahead of the RBNZ news. The weekly value area high and value area low kept the price within a range for the remainder of the week. This shows us that the JPY and NZD were weak as the price failed to form a trend.
In our week ahead analysis video we identified the opportunity for the price to move lower as the price rejected a key weekly resistance zone. After trading through the Value Area Low the sellers grabbed hold of the market and the sentiment remained for the rest of the week.
Did you see our EURUSD analysis? You can see it here.
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