The #Forex Market Wrap is here!
Watch the video to learn what key levels have been hit this week!
FOREX Market Wrap
This week we had to wait until the NFP number rolled around before seeing significant moves in the market. The number of jobs created last month fell from 249k to 199k well below the forecasts of 400k. Despite this unemployment fell and average hourly earnings rose slightly. This didn’t help the USD bulls though as the price of the USD Index fell significantly on the news.
The USD index is back at the weekly range lows after the NFP numbers. This news release wasn’t enough to see the price break out of the range but the price is putting pressure on the range lows. If the price breaks these lower we could see some downside to the USD back to the previous weekly highs.
As the USD Index heads back towards its range lows the EURUSD price has headed towards its range highs. If the price breaks out of these highs we can see a move towards 1.1500 forming. This could offer long opportunities in the short term in line with the retracement phase on the weekly time frame.
USDCAD was on our watchlist this week as we expected the Canadian Dollar to gain strength. The market retested a key supply zone which saw sellers enter the market. Now the price has formed a new lower low we can expect a retest and 1.2600 and possibly a breakout.
The S&P500 dropped this week against its seasonal trend. This move lower may be short lived as the risk currencies gained strength towards the end of the week. The Daily time frame shows the price formed a double top pattern showing a trend reversal.
See our USDCAD analysis here.
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