The Forex Market Wrap is here!
Watch the video to learn what key levels have been hit this week!
Forex Market Wrap
The markets are very volatile this week because of the amount of high impact announcements. The RBA kicked off the week with an expected 50bps rate hike, this saw the Australian Dollar weaken significantly. This was followed by US ISM Services PMI data which beat forecasts and came in at 56.7 up from the previous 55.3. The Bank of England announcement added volatility into the market this week, they hiked rates by 50bps but talked of the UK in or heading into a recession. The shock of the week was the NFP spike. The employment change beat estimates considerably, jobs in July grew to 528k with an increase in average hourly wages and a decrease in unemployment. This was the opposite of what the Federal Reserve said about jobs numbers coming in softer. This surprise caused the USD to rally.
The GBPUSD was one to watch this week as we expected the price to move back towards the previous support area. The price is currently trading at the neckline of the head and shoulders pattern that formed recently. This could be an area where buyers step in, however, recent positive USD data could put that move on hold.
The USDJPY price was one to watch this week as we expected to see a move back to the previous week’s highs around 131.35. The weekly chart is in a clear upward trend, and the price was likely to move higher off the previous highs. The 4hr chart shows the price reacting from the lows, the NFP data changed the bias for us here, as we did expect the price to move and retest the lows before moving back to the upside. Instead the 4hr break of highs shows buyers are in the market and we could see a move back to the highs.
The EURJPY price was also one to watch for us this week as the Euro was the weakest on the strength meter and the JPY was the strongest. The price did move lower this week and retested the previous lows before the price moved back to the upside.The 4hr break of trend shows that we could see the market move higher from here.
The GOLD price rallied again this week into the key weekly lows, the price could reject here and we could see a move lower. This will depend on the 4hr trend, if we continue to make higher highs and higher lows we can expect a breakthrough at this level. If not and the trend changes we could see a move back to the lows.
Did you see our USDJPY Analysis? You can see it here.
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