The Forex Market Wrap is here!
Watch the video to learn what key levels have been hit this week!
FOREX Market Wrap
The RBNZ were the only central bank to announce rates this week which saw them hike rates by 50bps to 2.00%. The RBNZ then in their rate statement talked about the need to hike rates further with a plan likely to see rates nearer 4% by the end of the year.
The Federal Reserve meeting minutes was one to watch this week as investors were looking for further clarity on what the Federal Reserve plans were. Nothing changed here and the Federal Reserve is likely to continue to hike rates as long as inflation continues to rise.
The price of AUDUSD was one to watch going into this week as the strength meter highlighted that the Australian Dollar was the weakest currency but in a reversal zone and the USD is the strongest currency but also in a reversal zone. This could have seen the AUDUSD continue its reversal phase on the weekly time frame we have been seeing recently. The price broke out of last week’s value area high which often leads to further upside. It retested and did continue to move higher in line with expectations.
USDJPY was an interesting watch going into this week as the price could have turned back higher in line with the slight stock market recovery. However, the price seemed to be capped by the weekly value area low and the low volume zone highlighted by the rectangle. These levels allowed sellers to add into the already downward trend.
The price of GOLD looked likely to move higher this week as we anticipated the USD to remain weak for the time being. The price did break out the value area high but failed to make up any significant ground with it remaining within a $30 price range. If the USD continues to weaken in the short term we could look for the price to break out of this range to the upside.
We expected the stock markets to recover this week even if it is only in the short term and the price did break above the key $4000.00 level we outlined in the week ahead analysis. If the price had remained below this level the bears would have taken the price back to the lows however after a 9 week downward trend we expected some profit taking. Now the price is above last week’s highs we could look for the market to continue higher to find resistance.
Did you see our recent USDCAD analysis video? You can watch it here.
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