ภาษาไทย
Tiếng Việt
The Forex Market Wrap is here!
Watch the video to learn more…
Forex Market Wrap Analysis
The Forex market saw some interesting movements this week, as central banks made significant decisions. The Federal Reserve hiked interest rates by 25 basis points to 5.00%. While this move was widely expected, it still caused some ripples in the Forex market.
Federal Reserve Chairman Powell added some nuance to the situation. He noted that participants had discussed the possibility of pausing rates, which suggested that further rate hikes may not be as imminent as some had expected. However, Powell also stated that if the Fed needed to hike rates further in the future, they would do so. This indicates that the central bank is keeping a close eye on the economy and may make further adjustments depending on how it performs.
The Swiss National Bank also hiked interest rates from 1.00% to 1.50%, causing some volatility in the Forex market. Additionally, the Bank of England hiked interest rates from 4.00% to 4.25%, as expected.
Overall, the market remained in a risk off environment with the JPY ending this week as the strongest currency.
AUDUSD
The price on the chart has traded through multiple technical levels and some observations included:
- The price of AUDUSD was one to watch this week due to the strength meter.
- AUD was the weakest currency however, it was in a reversal zone.
- The strength did not return and instead price of AUDUSD remains below the key 0.6700 resistance.
- Traders looking at this forex pair could identify short opportunities as price looks to be heading for support at 0.6575..
GBPUSD
The price on the chart has traded through multiple technical levels and some observations included:
- GBPUSD played out as expected breaking above the 1.2200 handle and trading higher.
- Price rallied into the key resistance at 1.2300 before reversing back down to the resistance now turned support of 1.2200.
- The weekly chart shows price trading within a longer term range with the 1.2400 being the highs.
- If the recent USD strength fails to continue then the price of GBPUSD could trade up to the range highs.
USDJPY
The price on the chart has traded through multiple technical levels and some observations included:
- The JPY remains strong this week which brought the price of USDJPY down to the key swing lows.
- USDJPY traded through the 132.75 on last week’s close and this momentum continued this week with the price reaching the support of 130.75.
- Price rallied from here, using the 132.75 as resistance and traded lower again.
- Price has now breached key lows, but buyers have stepped back in. If the risk off sentiment fades, USDJPY could trade higher.
GOLD
The price on the chart has traded through multiple technical levels and some observations included:
- The price of Gold moved in line with our expectations this week.
- We anticipated that the Fed would be slightly dovish in tone despite them continuing to hike interest rates.
- This saw the price of Gold continue to rally back to the highs around $2000.00.
- Price did find resistance here at the start of the week as expected, largely due to some profit taking.
Have you watched our USD Index analysis? You can see it here.
Enjoy low spreads and quick trade executions with a live account. Our highly committed customer support team will assist you with your quick account setup for any future concerns. Start trading with Blueberry Markets today.
About The Author
