The Federal Reserve and other central banks have expanded their easing programs. Now the question raises how the easing programs will affect the currency of that particular country. It seems like central banks are becoming money printing machines, and its effect will not be excellent.
The economic activity after the COVID-19 outbreak is still on the highest priority list than the current financial and fundamental data. However, the confirmed case of COVID-19 patients seems to be flattening. Therefore, it may force the market to have liquidity.
Central banks have done what they can do by cutting rates and introducing QE programs. Now it is time to see what market does.
The EURUSD price got a bearish rejection from the 1.0783 levels and currently moving towards the upside. As the price is within the range between 1.100 and 1.0783, the price will likely extend the range at 1.10 levels.
However, the overall outlook is still bearish. Therefore, a strong bullish rejection from 1.10 may extend the correction. On the other hand, a daily close above the 1.10 may push the price more up towards 1.1140 levels
The GBPUSD price is moving up with an impulsive bullish pressure. The price got a bullish daily close above the 1.2200 levels and managed to have a correction from that level.As the price got a rejection from that level the bullish outlook is intact.
The price is above the dynamic level of 20 EMA. Therefore, it may rebound towards the dynamic level, and any further rejection from the dynamic level in the daily timeframe would increase the bullish possibility with the target of 1.2773
The USDJPY price got several false breaks above the 108.34 level. However, This week’s price action is indicating that it will move lower as the price became very volatile above the level.
Therefore a daily bearish close below the 108.34 levels with some correction would be an opportunity to join the bearish rally towards 104.00 levels
The AUDUSD price is moving lower with the negative news from FED regarding the stimulus program. The price broke the 0.6200 levels with a massive breakthrough. Therefore, it is likely to move towards the 0.6670 levels in the coming days.
However, a small correction is pending, so we need to see in the intraday chart to see a closer look.
Overall, the US dollar is expected to remain bearish this week. In that case, any positive news from the coronavirus outbreak may encourage AUD and NZD bulls.