The Forex Market Wrap is here!
Watch the video to learn what key levels have been hit this week!
The NFP numbers for the US came in lower than expected with the numbers falling from 366k to 194k. However, we did see an increase in the average hourly wages and a decrease in the unemployment rate. This suggests that the jobs created were of a higher quality which led to a mixed result in the market. Initially we saw the USD fall but the price quickly came back to previous levels before the announcement.
This has left the USD index weekly chart showing a bullish inside candle which could show indecision in the market. The daily trend is still technically up and until that changes we could see some further upside to the greenback. However, if the price breaks the trend and trades back within the $93.00 range we could see a drop towards $92.00.
The GBP had a strong week despite some concerns from the Bank of England of inflationary targets. One BoE member suggested that negative rates could ease the burden on the economy which should have been a negative outlook for the GBP but investors seemed to shrug off those comments pretty quickly.
The GBPUSD price is currently forming a bullish inside candle closing above the key 1.3600 level. If this occurs and the price the following week breaks the weekly highs we could see more upside to the GBPUSD in the short term.
The AUDUSD weekly chart further suggests we could see some upside in the market. The recent bullish move could show that the market is preparing for a move higher. The commercials are continuing to increase their long contracts at these levels which could push the Australian Dollar higher.
Seasonally the Australian Dollar does outperform other major currencies and could mean a break higher for AUDUSD if the market completes the reversal pattern forming on the daily chart.
The EURAUD chart was one to watch for us this week as the price was forming a large head and shoulders pattern. Now the pattern is complete we can look for an opportunity to continue to short the market in line with the overall trend.
If you want to see our update on EURUAD you can view it here.
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