The worldwide financial market is very volatile for the last couple of weeks. There are lots of indecision and range-bound movement in most of the forex pairs. As the coronavirus pandemic is still in the air, investors and market participants are quite indecisive regarding where the price may set.
This week consists of several essential releases from most of the major central banks. The BOJ and FED are going to release its monetary policy decision, later on, ECB will also join. Any clear cut direction from central banks may set the trend for most of the major pairs. Otherwise, the volatility may go extreme.
Let’s start the weekly outlook with EURUSD.
The price of EURUSD was extremely volatile last week. As a result, the price got a false break below the support of 1.0783 levels. Overall the price is heading within a range of 1.0783 to 1.10 area. Therefore, any false break may lead the price to test the 1.10 are again this week.
So, we need to wait for a correction in the intraday chart, and rejection from 20 EMA on the H1 chart may increase the bullish possibility.
The GBPUSD price was also volatile last week, where the price broke below the 1.2450 levels stayed below the level for more than four days. As long as the price is below the 1.2450 event level, the price is likely to move down this week.
In that case, we will wait for the price to test the 1.2450 area again, and any bullish rejection with a bearish daily close from this level might create a bearish sentiment.
The EURJPY price is very potential for this week as the volatility and a bullish daily close from the support level prevails. As we know that the market volatility increases the possibility of the extension of the range; therefore, the EURJPY price has a higher opportunity to move upside towards the target of 119.50 in this week.
To enter the trade, we should wait for some correction on the hourly chart, and any intraday bearish rejection from 116.30 may increase the future bullish possibility.
The AUDUSD price is going to the bullish sentiment under the previous bearish impulsive pressure. As the price is approaching the critical 0.6450 event level, it is time to see whether the seller comes back or buyers are willing to take over the bearish sentiment.
As of now, any stong bullish rejection from 0.6450 may continue the bearish sentiment with the target of 0.6200. On the other hand, a strong bullish daily close above the 0.6250 may lead the price towards 0.6670 in the coming days.
Overall, the forex market may see a breakout this week’s central banks’ decision is pending. Therefore, some reliable movement is pending where the price may head on any side with an impulsive bearish pressure.