The Forex Market Wrap is here!
Watch the video to learn what key levels have been hit this week!
Forex Market Wrap Analysis
This week investors would have been keen to see how the latest NFP report fared against the previous considering the shock result of the last announcement. The employment change came in slightly above estimates of 315k. This lower number however was joined by a rise in unemployment and a decrease in the average hourly earnings. Despite this negative data the USD only fell for a short period as this is not the focus of the Fed. The focus of the Fed is price stability, this comes under the inflation remit which they were to act aggressively against. So, these latest jobs numbers should not prevent the Fed from hiking.
The EURUSD price this week largely ranged despite the price rejecting the previous months value area low. This could show us that the Euro weakness is fading as the two currencies battle for strength forming the ranging market. The range still is below last months value area low and until we break above the 1.0100 level, we should remain cautious with any rallies.
The GBPUSD followed on from last weeks bearish close and fell further as recession fears and energy crises grow. The GBP looks vulnerable from multiple avenues, and this will likely remain. The price broke through last weeks lows with ease and didn’t look back until the 1.1500 level. This could have been some short-term profit taking out of the market with a level of 1.1450 looking likely for the next bearish run.
The largest US Stock Market was one to watch this week after the recent close last week. The bearish momentum was likely to continue, and we saw this week price breaking back within the July value area. Despite the price moving back to the highs of this value area the fundamental pressure from the Fed could see the price continue lower.
The price of GOLD this week was to continue lower in line with our expectations. The price traded back to the monthly value area high as well as a weekly value area low adding confluence to the resistance. Buyers couldn’t hold above the level offering the sellers opportunity to drive prices lower to the other side of value. Now this level has been met we could assume the price could trade through to test the lows.
Did you see our AUDUSD Analysis? You can see it here.
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