2022-12-16 • Updated
It was an intense week across all the markets! We saw decent movements of major pairs, gas, stock indices, and oil prices. What should we trade this week? Time to check!
Last week was full of impactful events on the Forex market. First and foremost, the Federal Reserve raised the interest rate by 50 basis points. The Fed indicated that despite its readiness to keep hiking rates this year, it’s not going to make an extraordinary big increase. This news pushed the major currencies higher versus the US dollar. Both EURUSD and GBPUSD tested the upper borders of their consolidation ranges. At the end of the week, the Bank of England’s meeting and the US nonfarm payrolls added to volatility. AUDUSD also enjoyed the week on the bigger-than-expected (to 0.35% vs the forecast of 0.25%) rate hike by the Reserve Bank of Australia. We await the releases of US CPI and PPI to be the highlights of the next week.
The potential embargo of Russian supplies pushed the oil prices higher last week. XTIUSD left the triangle on the daily chart and tested the $107 level. XBRUSD rose to $110. The next resistance levels lie at $115 for WTI and $118 for Brent.
Gold jumped closer to the resistance zone at $1900-$1910 after the Fed interest rate decision. This week, it has the potential to strengthen towards the resistance at $1950. On the downside, $1850 and $1805 represent strong support levels.
The stock market indices anticipate huge volatility after the inflation releases. Despite the rise of both S&P500 and Nasdaq after the Fed statement, it can be short-lived. As the level of inflation determines further steps by the Fed, a considerable rise will indicate tighter decisions by the bank. Thus, stock indices will plunge. In addition, look at the Netflix stock, as its shareholders filed a lawsuit against the company. The stock is already oversold, so it may start rising this week. The first resistance lies at $270.
During the Asian session on Wednesday, the USD/CAD pair rebounded after two days of losses, reaching around 1.3590. This uptick is fueled by a stronger US dollar and lower crude oil prices, which put pressure on the Canadian dollar. The decline in Western Texas Intermediate (WTI) oil prices to approximately $80.70 is attributed to...
Gold prices rose on Monday as the US Dollar weakened amidst speculation about potential Federal Reserve rate cuts starting in June. This weakened Dollar was partly due to improved risk sentiment pushing US Treasury yields lower. Despite facing challenges from declining yields, gold prices recovered to nearly $2,170 per troy ounce, driven by the Dollar's weakness. Federal Reserve Chair...
Canadian retail sales showed a slight rebound in February, rising by 0.1% after a 0.3% drop in January. However, this failed to fully offset the steeper decline earlier in the year, suggesting a weakening momentum in consumer spending. The increase in February was driven by gains in sectors such as sporting goods, hobby retailers, and building materials. Despite the...
Jerome H. Powell, the Federal Reserve chair, stated that the central bank can afford to be patient in deciding when to cut interest rates, citing easing inflation and stable economic growth. Powell emphasized the Fed's independence from political influences, particularly relevant as the election season nears. The Fed had raised interest rates to 5.3 ...
Hello again my friends, it’s time for another episode of “What to Trade,” this time, for the month of April. As usual, I present to you some of my most anticipated trade ideas for the month of April, according to my technical analysis style. I therefore encourage you to do your due diligence, as always, and manage your risks appropriately.
Bearish scenario: Sell below 1.0820 / 1.0841... Bullish scenario: Buy above 1.0827...
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Don’t waste your time – keep track of how NFP affects the US dollar and profit!
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