The Forex Market Wrap is here!
Watch the video to learn what key levels have been hit this week!
FOREX Market Wrap
This week we saw further inflation increases in the UK and Canada, with Canada in particular beating forecasts and seeing a rise to 1.4%. Retail sales data out of Canada slowed with a drop from 2.6% to 1.3% showing consumer spending is down. The RBA Governor Lowe spoke this week suggesting the Australian central bank will continue to hike rates by 25 to 50bps as they say inflation rising to 7%. The Federal Reserve Chairman Powell testified this week with the chairman outlining the Federal Reserve remains committed to fighting inflation.
The price remained largely range bound this week as it failed to break the swing highs at 1.0600 or the value area high of last week around 1.0500. This evenly distributed week could show a potential breakout to come in the market. If the Federal Reserve continues to hike interest rates, because of this the USD should continue to strengthen and a breakout could be likely.
GBPUSD also remained range bound this week with the price trading within a tight price range. Last week’s point of control offered investors support this week with the price using this level as the bottom for the week. Again, this rotation of price action could lead to a larger breakout forming in the market. The Bank of England is hesitant to raise interest rates as this could push the UK into a recession, the US Federal Reserve is going to hike rates further so we could see the GBPUSD price could fall further on a break of these lows.
The NZDUSD price also found support at the previous weekly point of control after rejecting the key highs where sellers entered the market. Price remained above this area however, if the risk declines in the market we could still see the NZDUSD price break below the current lows.
The S&P500 rose this week as suggested in the week ahead analysis video. In that video we discussed the opportunity for the price to break back above the weekly point of control to close the gap. Now the price is at this gap we could assume that the price could reject this level or fill it before making another move.
Have you seen our EURCHF analysis? You can watch it here.
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