The Forex Market Wrap is here!
Watch the video to learn what key levels have been hit this week!
The USD Index this week has largely ranged between $93 and $92 despite some positive retail sales. If the current daily price action finishes as it is we could see the market remain range bound. However, if it was to break and close above the range we could see a move back to the highs at $93.70. Strength and weakness charts showed us the USD was a strong currency last week but this week we haven’t seen that momentum continue so we need to see how the price reacts and a breakout is needed to determine the next move.
The EURUSD price this week continued lower despite forming some low ranging candles at a support area. It could continue higher if the USD Index was to reject the range highs. The key will be the 4hr time frame, if this was to start to form higher highs and higher lows we can assume that the Daily time frame was entering an impulse phase.
The AUDUSD continued lower this week too in line with the retracement phase on the daily time frame. Now the price is back at the key support zone around 0.7280 we need to see a reversal pattern form. If the price forms a double bottom or a break of the current highs we can assume that a daily impulse phase is going to form and we can begin to look for long opportunities. Only downside to this market is the recent employment figures out of Australia dropped significantly as they suffer from the recent outbreak of Covid-19.
The NASDAQ was a market we looked at in the week ahead analysis video as the weekly looked to be entering the retracement phase. If the market is in a retracement phase in a bullish weekly trend we should see the daily time frame form lower highs and lower lows, however, the price has largely ranged. If the price breaks through the lows we can assume the retracement is forming a look for a move down to the major support zone back at $15200.00.
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