The #Forex Market Wrap is here!
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In today’s Forex Market Wrap, we’ll be going over the currency pairs that we highlighted in the Forex Market Outlook video. We’ll also go over some key levels that were hit and broken through.
US Dollar Index
The US Dollar Index was a big feature because the strength and weakness table suggested it was at a reversal zone.
In the weekly timeframe, buyers are starting to slowly come back. The prices came back down to the key support level, which we bounced from previously.
Seeing the weekly candlestick, they are slowing down and becoming smaller in range. We’re starting to have some wicks, which means there is an imbalance between buyers and sellers.
There are decisions being made on the supporting zone, and I feel that we are going to see more bullishness from the USD.
The USD Index looks like it is forming a bullish close at the key support zone. This, with the recent low ranging candles suggest that the momentum could be shifting. The USD did have a mixed week as data continues to go back and forth from positive to negative, adding uncertainty to the market.
Fundamentally, it may not seem that way. The federal reserve has been quite dovish in turn recently; the data from the US has been mixed. The market is reactive to the recent numbers and data points.
So, it’s turning into a tricky market to trade. However, the higher timeframe looks like we’re going to see further upsides. And, if we go back to the daily timeframe, the area that was of interest was this channel, but we haven’t seen a clear higher high form. That is something I’d like to see to look for a reversal.
If we do, I’d be happy to look for a long position. But, it looks like we are going to see bullishness come back to the market.
The EUR/USD is very reactive as well; it is inverse to the US Dollar Index.
We rejected the 1.2240 area, which was an area where we thought that if the price broke above, it would see 1.23, and if the price broke below 1.2160, then we’ll likely see some downside. The price does not look like it’s going to close below that area, though.
However, we may see another rally before the continuation to the downside. This is giving us a sign of what’s to come for the USD.
EUR/USD highlights the potential of the market to reverse as the price failed to trade higher than the resistance at 1.2242. However, the price has not changed trend yet as the price is failing to make a lower low, finding support at 1.2160. This could be a sign that there are some buyers in the short-term market.
Moving on to USD/CAD. Again, this is another market that we featured this week because of the slowdown in the weekly candlesticks. It was suggesting that the price would move to the upside.
The USD/CAD weekly price seems to be forming a bullish Doji at the key support, highlighting the potential weakness in the CA Dollar. Similar to the USD index, the past week’s price action suggests that sellers are losing momentum at this support zone.
I still feel the same. Low ranging candlesticks at major support usually leads to a reversal. In the daily timeframe, the market is consolidating again.
If the price breaks out the highs, then you can look for those long positions once the daily change in trend is formed.
Finally, with GBP/USD, the price is just stuck within the trading range between 1.42 and 1.41. The GBP was very reactive to those levels. If the USD strength comes back in, we could see a break to the downside. If the US Dollar weakens, then we could see a breakout to the upside.
UK Prime Minister Boris Johnson stated yesterday that there were no plans to stop the lift of the lockdown on June 21st, and the price seems to rally off of that.
The GBP/USD ranged this week largely due to the GBP strengthening. UK Prime Minister Boris Johnson revealed that lockdown restrictions will be lifted on June 21st, which caused a surge in the price. However, if we are to see that move sustained, we’d need to see it break out of the range.
Today, we’re seeing the flip in media reports saying that the rising cases of the strain from India could affect the UK’s plan of lifting the lockdown.
So, it’s going to be pretty interesting to see if Boris Johnson goes through with his decision. If so, the price should break to the upside. If not, we could see a reversal.
This range is going to be key on the GBP/USD. And if we see a breakout on either side, it could determine what will happen next for the GBP.
You can try trading with the EUR/USD, USD/CAD, GBP/USD pairs for as low as $100 when you open a live account. Fast execution, zero commission foreign exchange, and prompt support–that’s the Blueberry Markets experience.