The Forex market is still very volatile due to the outbreak of coronavirus. However, the death rates have become to slow down in most of the countries but the nature of the virus is very threatening to the global economy. Therefore, the impact is not likely to end until the cure or vaccine is created.
This week, the market may remain quiet and corrective until Thursday with some important releases from the European Union, US and later on the UK on Friday.
Let’s start the weekly outlook with EURUSD:
The EURUSD price is still very volatile near the support of 1.0783. The price action of last week lead the EURUSD through volatility towards the downside but it fails to touch the support level.
In this situation, further decline of the price towards the 1.0783 levels with corrective momentum might attract buyers to take the position with the target of 1.100. However, a strong daily close below the 1.0783 might alter the current expectation.
The GBPUSD bulls are still solid as the price broke above the 1.2450 with a daily close. However, after creating a new high above the level the price returned back to the 1.2450 level with corrective structure. Moreover, the price is supported by the dynamic level of 20 EMA besides the static support level.
A bearish rejection with a bullish daily close at 1.2450 may move the price towards 1.2773 levels.
The AUDUSD price is moving upside with a corrective momentum but still remains under the long term bearish trend. Moreover, the effect of COVID-19 is still affecting the global economy and Australia is one of the victims of it. As most of the business activity is dependent on China any good news from china is pending for AUDUSD buyers.
The massive bearish daily close from near the resistance of 0.6450 may extent the current bearish momentum with the target of 0.6183. On the other hand, a strong bullish daily close may alter the scenario with the bullish continuation pattern.
The USDJPY is moving with a lot of volatility as investors are uncertain to consider the JPY as the safe-haven currency or not. The pair is trading between the level of 108.33 resistance and 106.97 support levels.
The corrective structure is indicating the expansion of the current volatility. Therefore, a bearish rejection from 106.97 might create bullish momentum in the USDJPY price.
Overall, this week we may experience the expansion of market volatility. Therefore, the long term view of the market might not settle until a breakout happens on either side.