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Weekly Outlook for 11 May 2020 to 15 May 2020

US Non-farm payroll seen the worse result in decades with almost 200k jobless claim. It is an indication the situation may worsen in the coming quarter.

Earlier that the initial jobless claims was at roughly 30 million. Overall, there is still hopes that the situation may recover

Let’s start the Weekly forecast with EURUSD

EURUSD

The EURUSD price rejected the 1.0783 level once again with a bullish daily close. Therefore, the price has a possibility to reach the upper boundary of the zone at 1.0991 and make some bullish rejection.

Weekly Outlook for 11 May 2020 to 15 May 2020 1

In this market condition, as long as the price is above the 1.0783 the overall outlook is expected to remain bullish. In that case, we will wait for the intraday market rejection from the dynamic level to join the trade.

GBPUSD

The GBPUSD bulls were powerful last week but failed to hold the momentum as they were unable to make a new high. Therefore, price got a daily close below the 1.2450 after a potential double top pattern.

Weekly Outlook for 11 May 2020 to 15 May 2020 2

In that sense, we may sess the price to test the 1.2200 levels as long as bears are holding the 1.2450 levels. On the other hand, a daily close above the 1.2450 may alter the current market structure.

USDJPY

The USDJPY price moved lower at 106.50 support level and managed to have a bullish daily close above it. As the bears failed to hold the market below that level, we may experience an upcoming bullish pressure in the price. In that case, our primary target would be the 108.30 area.

Weekly Outlook for 11 May 2020 to 15 May 2020 3
Weekly Outlook for 11 May 2020 to 15 May 2020 4

On the other hand, a strong daily close below 106.50 may drag the price more down towards 105.80 levels.

AUDUSD

The AUDUSD moved higher with an impulsive bullish pressure and managed to hold the price above the 0.6450 level. Currently, the price is facing a critical zone at the 100-day simple moving average. Therefore we may need to wait for an appropriate price action to see.

Weekly Outlook for 11 May 2020 to 15 May 2020 5

However, the main challenge the price may face is the dynamic level od 20 EMA on the daily timeframe. A bearish daily close below the dynamic level of 20 EMA and static 0.6450 level may start a bullish rally in the price.

Overall, this week we may a dollar weakness in the price due to the worst Non-farm payroll result. Moreover, we need to see how the US government is handling the situation along with the US-China trade war that has ben risen again.

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