Welcome to today’s Market Blast.
Today we will take a look at Forex Trading on USD Index, EURUSD, AUDUSD, NZDUSD, USDCAD, USDCHF and the NASDAQ.
Last time, we wondered if the Russell 2000 would catch up with the other indices.
This time, the opposite was true with the other major indices, like the NASDAQ, falling.
In our next video, we will take a look at why and if we should buy the dip.
We see the recent rally in USD continuing based on US Bond yields, inflation fears, and the Fed putting rate reductions on hold.
So, will we see a reversal any time soon?
If we see a change in the fundamentals, like US bond yields, lower inflation, the Iran war, we may see that reversal, so keep an eye on the news.
If we look at USDCHF, we see price at 0.79, which is a key level which has held many times all the way back to Jul of 2025.
On USDCAD, we see a similar key level at $1.39.
We have been watching the rise of NZD based on a potential interest rate rise, but the strength of USD won out, with price action falling seriously, creating a lower trend line, with an oversold stochastic oscillator.
We see a similar story with AUD/USD, which is in an uptrend.
If we look at the daily chart on AUD/USD, we can see just how strong AUD has been since last November.
Again, EUR/USD is at a key level of $1.60, which has held many times.
On USD/JPY, we are approaching a key level of 160 yen.
So, two important takeaways here:
Firstly, we see how key levels repeat and hold very often.
And, just as importantly, you will note that these key levels are almost always round numbers, like 160 yen, $1.39, etc., etc.
But tomorrow is a critical day with the US Non-Farm payrolls, which will give the Fed some clues on the direction of the US economy and future interest rates, and therefore, the value of USD.
Also, we will see Canadian employment data, so watch for volatility on CAD pairs, especially USDCAD, where we see mixed strength and weakness.
