Forex Forecast: Pairs in Focus

The difference between success and failure in a forex trading largely depends on the currency pairs you choose to trade on each week and in what direction, and not on the exact trading strategies you can use to determine trading inputs and outputs.

At the beginning of the trading week, it is a good idea to look at the big picture of what is happening in the market as a whole and how such developments and macro foundation and market sentiment are affecting them.

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There are a few really long ones. Trends In the market, so it may be a good time to trade now.

Large image 9We January 2022

Despite the start of the new calendar year and the end of the big holiday season, last week’s market was relatively quiet, despite two major data coming out: FOMC meeting minutes and out-of-farm payrolls. Although both of these releases are surprising, neither of them has had much impact on the Forex market.However, the US stock market plummeted after the FOMC minutes saw the US stock market move further sharply towards the Federal Reserve monetary policy. The release of the NFP has seen a huge eclipse in the number of new jobs created, but the average hourly earnings data have surpassed expectations.

Consistent with the long-term trend of bullying, the US dollar has appreciated slightly..

After a good month in most of December, the situation worsened during the week, especially following the release of the falcon FOMC meeting minutes. Most stock markets, including the Benchmark US S&P 500 Index, ended the low week. The NASDAQ 100 Tech Index fell sharply. The goods were mixed, but crude oil rose, which was unusual in a high-risk area. The Australian dollar has fallen in the Fox market, and the British pound has been strong. I do not accurately describe the week’s activities in the Forex market.

The diversity of the omega-3 coronavirus has spread rapidly, sending new issues to the forefront. However, due to the varied and widespread nature of the vaccine, the risk of serious illness appears to be very low, so it does not appear to be harmful in many countries, especially in Europe.

In my post last week, I wrote that the best trades of the week close with the S&P 500 Index daily closed over 4800 and the USD / JPY currency pair closing daily (New York) above 115.25. This was a good and profitable call. The USD / JPY closed at 115.31 on Monday and closed the week’s high of 115.48 with a 0.15% gain.

Basic analysis and market sentiment

Last week’s topic:

  • Of Minutes of the FOMC meeting The committee noted that the current high inflation rate in the United States is not a “transition” and that it intends to begin resolving the federation’s balance sheet in March this year. This represents It tends to be more hawkish on monetary policy It is supported by the US dollar and could prevent the US stock market from reaching a new high.
  • US out-of-farm payroll data came in much lower than expectedCompared to the forecast 426k, new jobs were created in 199k. Unemployment, however, is lower than expected and is currently at 3.9 percent compared to the current 4.1 percent, while the average hourly wage is expected to rise 0.4 percent and 0.6 percent.
  • Global information continues to spread rapidly. Omikron corona virus is 70% less likely to develop a serious illness that requires hospitalization.. This means that despite the large distribution, the market is not really affected as economies seem to be able to continue to operate without significant disruption.
  • The diversity of omega-3 coronavirus continues to spread rapidly around the world.. Many European countries and Canada have imposed restrictions on movement, and new cases are still being made, with more than two million new cases reported worldwide.

Next week may see some degree of volatility., With Market direction may be determined on Wednesday when crucial US CPI data is released.. Another major data release this week is the US retail data release on Friday.

Last week, new cases of cholera virus were reported worldwide, with more than 2.5 million new infections reported on Friday. An estimated 59.1% of the world’s population now has at least one vaccine.

Newly confirmed cases of coronavirus cases generally occur in Algeria, Argentina, Australia, Austria, the Bahamas, Bahrain, Barbados, Belgium, Belize, Bolivia, Bulgaria, Burkina Faso, Canada, Colombia, Costa Rica, Croatia, Cyprus, Dominica. Fiji, Finland, France, Greece, Iceland, Israel, Italy, Jamaica, Kuwait, Latvia, Lebanon, Lithuania, Luxembourg, Mali, Mexico, Montenegro, Morocco, Netherlands, Niger, Northern Macedonia, Norway, Panama, Paraguay Qatar, Saudi Arabia, Senegal, Serbia, Slovenia, Spain, Sweden, Switzerland, Turkey, the United Arab Emirates, the United States, Uruguay and the United Kingdom.

Technical analysis

US Dollar Index

Below shows the weekly price chart US dollar index recently published by weak bullshit:Pin Candlelight last week, three weeks ago, after rejecting the 12257 level of protection. Notice how this key level of resistance is restored – in fact, tested only a few weeks after the FOMC was released, this may be a bear sign. Although this decline is not enough to reverse the long-term trend (the price is still higher than it was 3 and 6 months ago). It is well known that there is an obvious strong opposition here, which has an impact. Although this refers to long-term bullying TrendWe may have a big depression right now Undo. It should be noted, however, that the price is now very close to the main support level at 12150, which is continuing, so we may be seeing a merger between 12150 and 12257.

In general, I do not look at the dollar as a key driver for any transaction in the coming week.

US Dollar Index Weekly ChartUS Dollar Index Weekly Chart

USD / JPY

Of USD / JPY The currency pair closed for the third week in a row for the third week in a row, but the candlestick is a pin candle, which still looks very weak. We are witnessing a strong trend of bullying, but last week’s increase in risk has led to an increase in Japanese yen, so I do not want to go too far until we see New York (11 York) near the key defensive level near 116.29.

USD / JPY Weekly Chart

USD / JPY Weekly Chart

BTC / USD

Bitcoin failed for the second consecutive week last week, eventually breaking below key support levels at $ 42,651. It now looks like it has been transformed into a new opposition. Bitcoin has closed its lowest weekly closure since July 2021. These are clearly marked signs, but I see At $ 38,728 the latest support level may be very important. If this level of support is broken, I can see that the price, which was set last summer at around $ 32k, remains low.

If we get a daily candlestick worth over $ 38,728, this long-distance trade can be good with a risk ratio. Alternatively, Closing daily BTC / USD Less than $ 38,728 could be a good short trade target for $ 32k.

BTC / USD Weekly Chart

BTC / USD Weekly Chart

at last

I look at the best opportunities in the financial markets this week as New York closes at more than 116.29 or the BTC / USD pair pairs against the USD / JPY exchange rate.

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