It feels like one of those high and low Fridays in the forex market.


The forex market seems to be in one of those Friday highs and lows. Heading into the weekend – and ahead of the FOMC rate decision next week, where the Fed is expected to raise rates by 75 basis points – price action is up and down in some of the pairs. In others – like the USDCAD and AUDUSD

AUD/USD

AUD/USD is the currency pair comprising the Australian Commonwealth of Australia Dollar (symbol $, code AUD) and the United States of America Dollar (symbol $, code USD). The pair rate indicates how many US dollars are needed to buy one Australian dollar. For example, when AUD/USD is trading at 0.7500, that means 1 Australian dollar equals 0.75 US dollars. The Australian dollar (AUD) is the fifth most traded currency in the world, while the US dollar (USD) is the most traded currency in the world, resulting in a very liquid pair, with tight spreads, often staying within the spread range from 1 pip to 3 pip. on most forex brokers. AUD/USD Popular Among Different Types of Traders Many traders consider the AUD/USD to be perhaps the most consistent currency pair when it comes to swing trading, as it has often moved in consistent cycles. That said, each pair presents its own challenges. for traders. AUD/USD is very popular with swing traders, with the four-hour timeframe being, at least historically, more reliable than the others. Historically, AUD/USD has been influenced by interest rate differentials, commodity prices, government credit ratings, as well as general sentiment and speculation.

AUD/USD is the currency pair comprising the Australian Commonwealth of Australia Dollar (symbol $, code AUD) and the United States of America Dollar (symbol $, code USD). The pair rate indicates how many US dollars are needed to buy one Australian dollar. For example, when AUD/USD is trading at 0.7500, that means 1 Australian dollar equals 0.75 US dollars. The Australian dollar (AUD) is the fifth most traded currency in the world, while the US dollar (USD) is the most traded currency in the world, resulting in a very liquid pair, with tight spreads, often staying within the spread range from 1 pip to 3 pip. on most forex brokers. AUD/USD Popular Among Different Types of Traders Many traders consider the AUD/USD to be perhaps the most consistent currency pair when it comes to swing trading, as it has often moved in consistent cycles. That said, each pair presents its own challenges. for traders. AUD/USD is very popular with swing traders, with the four-hour timeframe being, at least historically, more reliable than the others. Historically, AUD/USD has been influenced by interest rate differentials, commodity prices, government credit ratings, as well as general sentiment and speculation.
Read this termthe pair is consolidating above and below a MA after a rise in the dollar against those currencies

Currencies

Currencies are generally a widely circulated form of money, being the primary medium of exchange when it comes to buying and selling goods and services. These are often issued by a specific government or set of governments, in the form 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 the backbone of the economy of the country or countries, due to the perception of value held by the people who use that currency. For example, the US dollar (symbol $, code USD) or the British pound sterling, (symbol £, code GBP), also called fiat money, because they are not tied to any specific asset, such as gold or silver. These metals were traditionally used as the primary means of payment, as they had real and real value. Even after the introduction of paper banknotes, many countries maintained a gold standard for much of the 20th century, meaning that one unit of currency could be exchanged for a fixed amount of gold. How to exchange 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 also spawned a new era in currencies, including digital currencies, 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 sparked interest and adoption in digital currencies, while offering relative anonymity. Digital currencies can now also be traded online, through exchanges and brokers, similar to foreign currency trading, known as the forex market. Forex is the largest market in the world, with a turnover of more than 5 trillion dollars per day, where fiat and floating currencies are bought and sold against other currencies, such as the euro against the dollar (EUR/USD) and the pound sterling against the Japanese yen (GBP/JPY).

Currencies are generally a widely circulated form of money, being the primary medium of exchange when it comes to buying and selling goods and services. These are often issued by a specific government or set of governments, in the form 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 the backbone of the economy of the country or countries, due to the perception of value held by the people who use that currency. For example, the US dollar (symbol $, code USD) or the British pound sterling, (symbol £, code GBP), also called fiat money, because they are not tied to any specific asset, such as gold or silver. These metals were traditionally used as the primary means of payment, as they had real and real value. Even after the introduction of paper banknotes, many countries maintained a gold standard for much of the 20th century, meaning that one unit of currency could be exchanged for a fixed amount of gold. How to exchange 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 also spawned a new era in currencies, including digital currencies, 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 sparked interest and adoption in digital currencies, while offering relative anonymity. Digital currencies can now also be traded online, through exchanges and brokers, similar to foreign currency trading, known as the forex market. Forex is the largest market in the world, with a turnover of more than 5 trillion dollars per day, where fiat and floating currencies are bought and sold against other currencies, such as the euro against the dollar (EUR/USD) and the pound sterling against the Japanese yen (GBP/JPY).
Read this term (USDCAD higher and AUDUSD lower).

  • EURUSD: EURUSD sellers pushed the price late in the Asian/European session after bouncing higher in the early Asian session (off support near the 0.99515 level). The move down tested the October 6 swing high (a modest target) and bounced higher and in the process above the 100 hourly MA, currently at 0.9968. The high price reached 0.9989 – within shouting distance of the parity level. The price moved back below the 100 hourly MA and also the 0.99515 level. The current price is trading at 0.9959. And now? For traders looking for something to do in the highs and lows, if price can stay below the 100 hourly MA, sellers are in control. To paint the technical picture… price stayed below parity and failed above the 100 hourly MA. Targets are 0.9925, then Monday and Tuesday highs at 0.9898 (let’s call it 0.9900). The 200-hour MA is at 0.9888.

EURUSD high, low, high and low.

  • GBPUSD: The GBPUSD on the 4-hour chart below, tested a swing lower dating back to the end of August. This area was a ceiling in October until it broke above this week. Holding the low today is good for the move higher this week. On top, this week’s highs extended above a swing zone but failed.

GBPUSD tested a downside swing zone

Looking more broadly at the daily chart, this week’s highs have stalled on a descending trendline (see chart below). This reassured sellers on this chart.

So there is support below the 4-hour chart and resistance above the daily chart. The price trades between these extremes accordingly.

GBPUSD trades near support and resistance levels

  • USDJPY:USDJPY saw an upside boost from the BOJ keeping rates unchanged and with the BOJ Kuroda saying it would continue to ease if warranted. Looking at the hourly chart, the upward move has taken the price back above its 100 hourly moving average at 147.402 currently (blue line in the chart below). The price also extended above the 38.2% retracement of the move lower from last Friday’s high at 147.71. Buyers tried to get and stay above this level on 2 separate hourly bars, but failed on each one. The level remains a key level to break through and stay above if the buyers want to push higher. The 200-hour moving average of a 50% retracement near 148.50 would be the target for further bullish momentum.

USDJPY trades above and below the 100 hourly moving average

That said, moving back below the 100 hourly moving average and staying below would be more bearish. Certainly, the price has seen price action above and below this moving average line as traders are more cautious given the decline this week. As I commented in my videos this week, the downside move was aided by technicals, and technicals will have to be traders’ guide given central bank fundamentals supporting the USD against the JPY. (a higher USDJPY). It can happen, and the fundamental story could potentially change down the road. Traders should therefore pay attention to this. For me, staying below the 100 hourly moving average would be necessary to give sellers more confidence. Absent this, and sellers still have a chance against the 38.2% retracement or the 50% and 200 hourly moving averages, but they still have more to prove on the downside.

  • USDCHF: USDCHF is higher but stabilizing between the 100 hourly moving average below and the 200 hourly moving average above. Traders will look for a break both ways.

USDCHF trades between its moving averages

  • USDCAD: USDCAD held support against the 38.2% retracement of the upside move from the August low near 1.3500 and a swing zone near that level (see the 4-hour chart above). below). The price is trading above and below its 200-bar moving average on the 4-hour chart at 1.3605 currently. At the top, there is a swing zone between 1.3637 and 1.3666 which should be broken again to increase the bullish bias.

USDCAD bounces off the 38.2% retracement this week


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