Forex Weekly Outlook- 03 May 2021 to 07 May, 2021
In the forex weekly Outlook, we will cover the possible movement of most of the major currency pairs this week. It is the beginning of May 2021 and the Reserve Bank of Australia and Bank of England will sit. However, we don’t expect any change from our bank but the Bank of England may taper as the UK economy is growing fast. What we can expect from the market this week?
There was a decent Movement in last week’s closing day as it was the closing of the month CEO monthly profit-taking was in place. Later on, it is just the beginning of the new month and we should expect some correction from the market. Once the correction is over the market Mein shows decent movements with impulsive pressure.
Let’s see the forex weekly outlook with the EUR/USD:
EUR/USD price fails to break above the 1.2150 resistance level and rejects the level with a bearish pin bar. Later on, the monthly closing day appears and the price falls straight down to the 1.20 level. However, the dynamic 20 EMA is playing as support at 1.20 Area that may push the price up.
Therefore, as long as the price is trading above 1.20 level we may expect some bullish pressure this week. Otherwise, if you want to take any sell trade you should wait for the price to break below 1.20 level with a daily close to enter the trade from a reliable correction.
AUD/USD is trading within the range of 0.78 to 0.76 level. Despite the hawkish Reserve Bank of Australia the price paid to break above the 0.78 level last week and the price tested this level again before falling to the 0.77 area.
The price move down and a daily close that happened below the dynamic 20 years may have created a bearish possibility in the price.
Therefore, if you want to take a selfie with you should wait for a correction and any reservation from the intraday minor level with a reliable strategy will be a good selling opportunity. In that case, the primary target would be 0.76 level
Unlike EUR/USD and AUD/USD, GBP/USD is very optimistic as the bank of England may show some hawkish tone in the coming week. In terms of economic recovery and COVID-19 infection-fighting Bank of England is stronger compared to other major economies.
However, the price fails to test the 1.40 level and move down by breaking the recent low of 1.3820 and the dynamic 20 EMA. Therefore, as long as the prices trading below the dynamic level will be looking for to sell but traders should focus on risk management during the fundamental releases.
Overall, there is a huge possibility of making money from the market as the liquidity comes with some decent possible movement in the price.