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 saw multiple high impact news events which included 3 central bank rate announcements and Non Farm Payroll. The week kicked off with the RBA (Reserve Bank Australia) who left rates unchanged at 0.1% but stated they will look to hike rates to combat the rising inflation. Next up was the BoE (Bank of England) who hiked rates by another 25bps to 0.5% as they look to fight the rising inflation in the UK. The ECB took a slightly different approach; they left rates unchanged at 0.0% but stated they will not look to hike rates until their tapering process ends.
The USD Index shows that the USD weakened significantly this week despite price breaking into new highs at the end of last week. The price action this week was completely reversed, this could have been due to the Federal Reserve suggesting that when they hike it won’t be as aggressive as investors would like. If this continues we could see some further downside to the market.
The USD weakening has sparked fresh buying of EURUSD this week with the price breaking through the major 1.1400 resistance. If this is going to continue we could look for buying opportunities next week as the 4ht time frame continues to form a bullish trend.
The New Zealand Dollar was one to watch for us this week as the currency strength meter highlighted the currency was weak but in a reversal position. This means that the currency could continue its current weakness against stronger currencies and reverse against weaker ones. The price of NZDUSD retested a key resistance zone and was rejected which suggests the NZD is still weak currently.
The GBPUSD price rallied immediately after the rate decision but was soon met with fresh selling after the price rejected the key 1.3600 level. The weekly chart shows the price closing bullish which could suggest a higher low is forming. If this does form we can expect the market to rally back to the 1.3700.
Did you see our week ahead analysis this week? see it here.
Enjoy low spreads and quick trade executions with a live account. Our highly committed customer support team will assist you from your quick account setup to any future concerns. Start trading with Blueberry Markets today.