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 we had multiple central bank announcements including data from the RBA, BoC and ECB. The RBA hiked interest rates to 2.35% in line with forecasts which saw the Australian Dollar weaken as the data was likely priced in. The Bank of Canada stepped up next with a rate hike of their own seeing rates move up to 3.25%. Investors were keen to see if the ECB would hike rates by the forecasted 75bps or make a 50bps hike instead leaving the markets disappointed, however, the ECB did not disappoint and announced a 75bps hike. Along with this talk about further hikes to come, this could strengthen the Euro in the short term.
The EURUSD price remained range bound this week however at one point it looked likely for the price to break back below the key 0.9900 level. Instead buyers took over and drove the prices higher back above the monthly value area low and previous highs at 1.0100. However, the price failed to sustain above these highs and price quickly reversed from this area leaving the price range bound.
The GBPUSD price was on our watchlist to look for the price to reject the monthly range lows around 1.1450. The price did reject this level twice this week seeing the price rally back to the upside above the 1.1600 level. This was to be short lived as price has closed back below these highs however, the strength meter this week identified the GBP at a bottom which could reverse in the short term. This looks more likely to be a USD based move at the moment due to the USD Index falling rather than GBP strength.
The RBA hiked interest rates this week which saw the AUDUSD price trade lower towards the major monthly lows and monthly value area low. The price formed a higher low after testing the monthly low showing buying momentum. The price is currently testing the August monthly value area low, if the USD continues to weaken we could see a move back into the August value area.
The USDJPY price did continue higher this week in line with our expectations. The 145.00 highs were the targets for any long positions with this level being filled later in the week. This move sparked the Bank of Japan to talk of intervention. Price has moved lower from the 145.00 resistance however this is more down to the USD weakness we saw enter the market.
Did you see our EURUSD Analysis? You can see it here.
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