The Forex Market Wrap is here!
Watch the video to learn what key levels have been hit this week!
FOREX Market Wrap Analysis
There were some surprising headlines this week but the most surprising was out of the UK, the Prime Minister Boris Johnson resigned after multiple MPs from his cabinet resigned showing a lack of confidence in his leadership. The GBP reacted positively to this data and we saw a move higher in the currency.
In other data this week the RBA hiked interest rates to 1.35% in a move to try and fight the rising inflation. This could also be a way for the RBA to front run any needs to decrease rates if the inevitable recession hits the market.
The NFP payroll data came in above forecasts highlighting a strong labor market in the US. US Jobs created totalled 372K through the month of June. This combined with a steady unemployment and average hourly wage saw the USD strengthen in the short term compared to other markets.
The price of EURUSD met our expectations this week as the price rejected the high volume spike we outlined from the weekly volume profile. The lower high that formed after the rejection saw price trade through the lows of 1.0350 with ease and the price didn’t look back from there. This aggressive move could fade over the next week but with inflation rising and jobs increasing the US economy could continue to heat up.
The AUDUSD price rejected last week’s value area low we outlined in the week ahead analysis video. This zone had been a key area for the market and the double top that formed showed that buyers weren’t trading above. Price however has remained within last weeks low with buyers stepping in at this area. However if the USD continues to strengthen it may only be a matter of time before the price continues to form new lows.
The USDCAD price broke through the highs without looking back this week. We had anticipated for the USD to strengthen but if CAD also remained strong we could have seen the USDCAD price remain in a range and price to move lower. That wasn’t to be the case for this pair as price spiked into the key daily highs once again. The price has failed at these highs once more which does show sellers are active in these areas but again, with the USD fundamentally strong we could see these highs broken in the near future.
The US stock market this week rallied after retesting last week’s low, the price rallied after that retesting the resistance zone of interest. Sellers have entered the market at this zone which could see the stock market fall from as aggressive selling originated from this area before. If the price remains below this double top highs we could see some further downside to the stock markets.
Did you see our recent GBPJPY analysis? You can see it here.
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