The Forex Market Wrap is here!
Watch the video to learn what key levels have been hit this week!
The USD index is rallying after breaking through the recent swing lows. The breakout would have caused breakout traders to jump into the market however, the market has had other ideas and the price is now rallying. In the week ahead analysis this week we discussed the potential for the market to find support here as the weekly chart shows a strong uptrend. If the market breaks through the 4hr highs and forms new higher highs we could expect a rally back to the swing highs.
In line with the USD index the EURUSD price rallied back to the previous resistance level just missing the key resistance at 1.1700. The sellers have entered the market now and if the price continued to break the lows we could see a significant move back to the key support level at 1.1500.
USDCAD will be an interesting market to watch as the weekly chart shows very small low ranging candles forming. This is due to the two currencies being strong in the market currently and when this happens we often see a tight trading range.
If the Canadian dollar begins to lose strength we could see the market break the weekly highs and rally up to the previous lows at 1.2500.
USDJPY was on our watchlist this week as the weekly chart looked to be forming a bearish candlestick showing signs of a potential reversal. However, sentiment indicators suggest the retail market is heavily short the USDJPY currently suggesting the market is more likely to continue to rally higher. The price is currently working within a tight trading a range a break of the highs should see these sellers flip and we could see another rally highs.
Check out our previous week ahead analysis here.
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