In this week’s Week Ahead Analysis we take a look at the key charts of the week with #EURUSD, #NZDUSD, #USDCAD and more!
Watch the video to learn more…
Week Ahead Analysis
This week’s high impact data doesn’t show up until Wednesday with the Bank of Canada hiking rates by 50bps. This is in line with most other central bank policies currently as global inflation remains high. This data could see the Canadian Dollar continue to strengthen up until the event where we then may see some volatility. The big data for this week will be at the end of the week with Non-Farm Payrolls. The Jobs number is forecast to come in lower but still at a high of 300k+ this is still a strong figure for the jobs number.
The strength meter this week highlights the AUD is the weakest currency but in a reversal zone with the USD and CAD getting weaker. The GBP, NZD and JPY continue to gain strength which is unusual due to it showing risk and risk off currencies getting stronger, it is usually one or the other.
With the NZD getting stronger we want to be looking for opportunities to go long on the currency against weakening currencies. This could offer a long idea on the NZDUSD price if it was to retest a key support area. This week we will be looking for the price to retest last week’s value area high and point of control area around 0.6480. If the price was to form a bullish rejection at this area we could assume the upward trend will continue.
The EURUSD price recently rejected the low volume area around last week’s highs of 1.0766. If the USD continues to weaken we could look for the opportunity for the price to break through this low volume level next week, if it does we could expect the price to continue to the upside.
The price of USDCAD was one to watch going into this week after we saw the price forming a larger consolidation pattern. Due to the recent USD weakness we expected to see the price break to the downside and head towards an area of low volume with rests around 1.2650. If the price was to retest the value and previous weekly low we could expect sellers to enter the market and drive the price lower.
Last week we anticipated that the price of the stock market would rebound if the price could trade above $4000.00. Now the price has rebounded we could expect this momentum to continue in the short term offering long opportunities on retracements back into key areas. Due to the price rallying aggressively towards the end of the week we don’t have a lot of volume to work with so if the price was to test a low volume area we could look for a consolidation and a breakout opportunity around these areas.
Enjoy low spreads and quick trade executions with a live account. Our highly committed customer support team will assist you from your quick account setup to any future concerns. Start trading with Blueberry Markets today.