Weekly Forex Market Update & Key Levels Dec 14 – 18th

WEEKLY FOREX UPDATE

EURUSD – As mentioned in a previous market update, the 1.048 weekly lows represented a strong support zone by the Agents of the Fed, and that we could see a turn at that level. This was caused by the ECB’s decision not to further inject liquidity into the markets. I expect further upside movement into a resistance zone before heading lower. Nevertheless, I still maintain a downside bias with the EUR.

EURUSDWeekly-131215

USDCAD – What a week for Canada. First the BOC (Bank of Canada) hinted that negative rates could be expected, then oil makes new yearly lows. As the chart below reflects it was a very weak week of the Canadian Dollar.

USDCADWeekly-131215

US30 – The US stock market had a negative week and probably due to the market participants behavior to the upcoming Fed’s meeting. Whether or not the Fed will raise interest rates, it will undoubtedly affect the markets direction. Something definitely worth paying close attention to. The Fed really painted themselves into the corner here as they will need the face dire consequences no matter what they do. If they raise rates, it will usher in a new recession and probably more money printing. Or if they don’t raise rates, it will continue to push more debt into the markets (since rates are very low) and have a worse repercussion in the future.

US30Daily-131215

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Chris Ferreira

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