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 investors were waiting for the Non-Farm Payroll numbers which followed through with its positive forecasts. The employment came in above 400k with a rise in average hourly earnings and a drop in unemployment. This was a very positive outcome for the USD which saw it strengthen directly after the news.
The USD Index remained range bound between $99 and $98 with the price most recently testing the range lows and finding support. The RSI on the weekly shows the USD is in an overbought condition however, the positive jobs data could see the Federal Reserve pressured to raise interest rates further which could keep the USD strong in the near term.
The GBPUSD price was one to watch for us this week as the strength meter highlighted some strength returning the GBP. However, with the USD remaining strong too the currency pair ranged but remained above the key 1.3100 handle. If the USD was to continue to gain strength then we could see the price trade back below this key level.
The price of USDJPY has been of interest for some time as the price has spiked significantly. In the week ahead analysis video we highlighted the correlation between the US10YR Bond yields and the USDJPY price. The bond yields found resistance this week and started to push lower, this led the price of the USDJPY to reject the major highs. The price action on USDJPY shows price forming a head and shoulders pattern which could see the current trend reverse.
The price of GBPNZD was one to watch from our strength meter analysis this week. The price formed an indecisive candlestick this week showing that a reversal is more likely to form here. In our week ahead analysis we highlighted the potential for the price to reverse from the key lows which did see buyers step in. If the 4hr trend can form a new high we could see the price trend much higher.
Do you trade USDCAD? you can see our previous analysis here.
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