The last week was certainly a volatile one for the major currency pairs. The GBPUSD saw the biggest movement, falling to the lowest level on record, and the EURUSD
EUR/USD
The EUR/USD is the currency pair encompassing the European Union’s single currency, the euro (symbol €, code EUR), and the dollar of the United States (symbol $, code USD). The pair’s rate indicates how many euros are needed in order to purchase one dollar. For example, when the EUR/USD is trading at 1.2, it means 1 euro is equivalent to 1.2 dollars. Why the EUR/USD is the Most Popular Trading PairCompared to all tradable currencies, the euro (EUR) is the world’s second most traded currency, behind only the US dollar. This currency pair is the most traded and liquid currency pair on the market.As the most popular trading pair, the EUR/USD is a staple of every brokerage offering and often has some of the lowest spreads relative to other pairs. Ultimately, the currency follows the two most economic blocs in the world and sees the most volume for this reason.The EUR/USD has a wide range of factors that influence its rates. From the EUR side, economic data in the Eurozone as well as internal factors in the bloc can easily impact rates. Even small member states can effectively weigh on the EUR, as seen in Greece during bailout talks in the 2010s. Alternatively, developments in the United States and the Federal Reserve commonly affect the EUR/USD. Many examples include the bailouts during the Financial crisis, tax cuts during the Trump Administration, and Covid-19 relief measures, among others.
The EUR/USD is the currency pair encompassing the European Union’s single currency, the euro (symbol €, code EUR), and the dollar of the United States (symbol $, code USD). The pair’s rate indicates how many euros are needed in order to purchase one dollar. For example, when the EUR/USD is trading at 1.2, it means 1 euro is equivalent to 1.2 dollars. Why the EUR/USD is the Most Popular Trading PairCompared to all tradable currencies, the euro (EUR) is the world’s second most traded currency, behind only the US dollar. This currency pair is the most traded and liquid currency pair on the market.As the most popular trading pair, the EUR/USD is a staple of every brokerage offering and often has some of the lowest spreads relative to other pairs. Ultimately, the currency follows the two most economic blocs in the world and sees the most volume for this reason.The EUR/USD has a wide range of factors that influence its rates. From the EUR side, economic data in the Eurozone as well as internal factors in the bloc can easily impact rates. Even small member states can effectively weigh on the EUR, as seen in Greece during bailout talks in the 2010s. Alternatively, developments in the United States and the Federal Reserve commonly affect the EUR/USD. Many examples include the bailouts during the Financial crisis, tax cuts during the Trump Administration, and Covid-19 relief measures, among others.
Read this Term also reached to a new low for the year and lowest level since 2002.
What about the other pairs? How did the pairs end the week from a technical perspective? How can we prepare for the new week?.
I can say in the shorter term, some foreign currencies
Currencies
Currencies are a typically a form of money in wide circulation, being the primary medium of exchange with respect to buying and selling goods and services. These are often issued by a specific government or collection of governments, by way of paper notes and coins. Other forms of currencies include previous metals such as gold and silver, and digital currencies such as Bitcoin. Currencies serve as a backbone of the country’s or countries’ economy, due to the perception of value held by the population that uses that currency.For example, the United States dollar, (symbol $, code USD), or the British pound sterling, (symbol £, code GBP), also known as fiat money, since they are not linked to any specific asset, such as gold or silver. Such metals were traditionally used as the main method of payment, since they held real and actual value. Even after the introduction of paper notes, many countries maintained a gold standard for much of the 20th Century, meaning a unit of money could be exchanged for a fixed amount of gold. How to Trade Currencies?The modern world, with the invention of electronic networks, computers and the internet, has allowed the transfer of money to occur almost instantaneously. It has also spawned a new era in currencies, including digital money, such as Bitcoin and Litecoin. Not backed by any government, but based on a complex set of mathematical software algorithms, the ubiquity of the internet has generated interest and uptake of digital currencies, whilst providing relative anonymity. Digital currencies can now also be traded online, via exchanges and brokers, similar to trading foreign currencies, known as the foreign exchange market. Forex is the world’s largest market, with over $5 trillion turnover per day, where fiat, floating currencies are bought and sold against other currencies, such as the euro vs the dollar (EUR/USD), and the British pound vs the Japanese yen (GBP/JPY).
Currencies are a typically a form of money in wide circulation, being the primary medium of exchange with respect to buying and selling goods and services. These are often issued by a specific government or collection of governments, by way of paper notes and coins. Other forms of currencies include previous metals such as gold and silver, and digital currencies such as Bitcoin. Currencies serve as a backbone of the country’s or countries’ economy, due to the perception of value held by the population that uses that currency.For example, the United States dollar, (symbol $, code USD), or the British pound sterling, (symbol £, code GBP), also known as fiat money, since they are not linked to any specific asset, such as gold or silver. Such metals were traditionally used as the main method of payment, since they held real and actual value. Even after the introduction of paper notes, many countries maintained a gold standard for much of the 20th Century, meaning a unit of money could be exchanged for a fixed amount of gold. How to Trade Currencies?The modern world, with the invention of electronic networks, computers and the internet, has allowed the transfer of money to occur almost instantaneously. It has also spawned a new era in currencies, including digital money, such as Bitcoin and Litecoin. Not backed by any government, but based on a complex set of mathematical software algorithms, the ubiquity of the internet has generated interest and uptake of digital currencies, whilst providing relative anonymity. Digital currencies can now also be traded online, via exchanges and brokers, similar to trading foreign currencies, known as the foreign exchange market. Forex is the world’s largest market, with over $5 trillion turnover per day, where fiat, floating currencies are bought and sold against other currencies, such as the euro vs the dollar (EUR/USD), and the British pound vs the Japanese yen (GBP/JPY).
Read this Term in the short term closed the week with a bullish tilt vs the USD. The “Dollar is King” crown was tarnished a bit.
Some others kept the tilt more to the downside vs the greenback.
You might also be surprised with some of the technical biases. Take a look and see.
This week, I parsed out each pair individually. Watch one by one, OR pick and choose. Trading successfully requires being aware and prepared for the new trading week. So spend a little time and get yourself ready to trade on Monday.
Be sure to Like, Comment, and Subscribe to our YouTube channel. Good fortune with your trading and have a great and safe weekend.
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EURUSD: EURUSD rebounds from new 2022 lows and tilts short term bias back to the upside.
The EURUSD moved to a new low going back to 2002 this week, but rebounded into the close for the week and is closing with a short term bullish bias. Could the low be in for the pair? In this video, I outline the levels that would keep the bias more bullish for the pair, and the key targets to get to and through to increase that bias. I also outline what would disappoint the buyers trying to catch the bottom.
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GBPUSD: A record low for the GBPUSD, but the closing level for the week is short term bullish.
The GBPUSD moved to a new all time record low last week. However, by the close of the week, the price had rebounded close to 900 pips from the low, and is closing the week with a more bullish bias in the short term. Surprise! Surprise! But is the GBPUSD pair out of the woods?
What needs to be done to keep the short term bias intact in the new trading week? What would turn the beat BACK around. Click on the video below.
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USDJPY: The USDJPY is still dealing with the BOJ intervention extremes.
The USDJPY has the ghost of the verbal and actual intervention from the Bank of Japan to deal with near the 145.00 level and above. The highs this week respected the 145.00 level, but is still closing the week near the level as traders tempt the central bank to try and defy the fundamentals.
Can the sellers continue to keep the lid on the pair and perhaps push lower in the new trading week? What are the downside targets that would need to be broken to give the BOJ and traders some comfort. For the buyers, it would take someone bigger than retail traders to take on the BOJ. So be aware. CLICK BELOW for the USDJPY key levels in play going into the new trading week.
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USDCHF: The USDCHF is the only major currency pair that has not approached and broken its 2022 high. Nevertheless, through the ups and downs this week, the low bottomed near an upward sloping trend line (after breaking the 100/200 hour MAs) and is closing above the 100 hour MA and near mid range for the week. That tilts the short term bias to the upside going into the new trading week.
The USDCHF is one of those pairs that may not be trending for long but it finds support, it finds resistance and it can move. In the video below I look at the levels that you should pay attention to in the new trading week.
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USDCAD: USDCAD closes near highs for the year and highest level since May 2020. What now?
With the USDCAD closing at new highs for the year and highest level since May 2020, the USD buyers are in firm control. The pair moved up toward the high of a swing area that is the gate to the extremes for this pair that peaked the price way up at 1.46650 to 1.4666 in 2016 and again in 2020. Where is that door? Will the buyers bust through? You need to be aware and prepare.
CLICK on the link below to see where we stand and what is important in the new trading week.
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AUDUSD: The buyers in the AUDUSD had their shot to correct and move off new 2022 lows on Friday, but they shot and missed.
In this FOREX QUICK video below, I look in detail at the AUDUSD. The sellers are back in control and closed Friday at the lows for the day. Bias remains in the bears favor in the short term and the long term.
More specifically, the pair is closing below the 100 hour MA and a channel trend line. Both were broken. Both breaks failed.
Going forward, it will take a move back above those areas to tilt the bias back to the upside (that would be the minimum). Absent that and the sellers are in firm control in the short and long term.
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NZDUSD: With the RBNZ set to raise rates by 50 BPs this week, what do the buyers have to do to get the NZDUSD higher?
Like the AUDUSD, the week saw the pair bounce higher and extend above the 100 hour MA and a trend line that has been a remarkable barometer for resistance and support going back to mid September.
However, going into to weekend and into the new trading week, what we know is that the NZDUSD buyers had their shot to take more control. That move failed and the price is closing near the lows for the week.
Can the RBNZ come to the rescue this week? If so, what would have to happen technically in the new trading week for the NZDUSD to tilt the bias back to the upside? Until then it is the down, down, down trend for the NZDUSD.