The lack of fundamentals this week allowed traders to take full advantage of the charts without worrying too much about unexpected noise. In addition, pairs like GBPJPY are setting up for longs that can be taken next week.
Amidst all the majors that gained on the Dollar this week, US Oil seems to be the one that has continuously dominated. Today marks the ninth consecutive day that the commodity has increased in price. Price is almost at $60 per barrel and further upside is looking almost certain at this point. Traders are up +475 pips with stops in profit.
Naturally, as the Dollar turns bearish, currencies like the Pound would move higher. GBPUSD longs were explored this week for a gain of +80 pips. Traders will look to reenter next week. Price action traders are also looking at possibly entering longs for GBPJPY as well. Both pairs are mimicking similar price action which points to further bullishness.
Next week will be a stark contrast to this week as we have a slew of fundamentals such as core retail sales and manufacturing PMI. Other than the Dollar, most currencies have been responsive to fundamentals. It’ll be interesting to see what the Dollar has up its sleeve next week.