Weekly Outlook for 06 July 2020 to 10 July 2020
Last week, there was the closing of June and opening of July. Therefore, we have seen several usual counter trade movements that we mentioned in our last analysis.
This week is the second week of July, therefore, we are expecting a counter-trend movement of last week’s direction.
However, as the middle of July is approaching, a strong trend is yet to form in the coming days and we will find good opportunities from this week.
Therefore, any Breakout towards our direction is good to hold as the price has a higher possibility to continue until the last week of July.
Let’s start the Weekly forecast with EURUSD
The EURUSD pair is trading above the 1.1200 for the last 3 weeks. As we mentioned in our previous analysis that we will focus on buy trades only as long as the price is holding above the 1.1200.
On the other hand, any daily close below 1.1200 would be the potential to drag the price more down with the target of 1.100.
In that case, traders should wait for a sufficient correction and a rejection from the 1.1200 level.
GBPUSD bulls are very strong at the 1.2484 resistance area. Therefore, a daily close below this level is important to enter a sell trade.
On the other hand, as the current bullish price action is very strong a daily close above 1.2484 would be potential for testing the 1.2620 area.
Therefore, we may wait for a daily close below 1.2480 level for a bearish continuation setup with the target on 1.2287.
USDJPY is trading above the 107.00 area, therefore, the price has enough room to continue higher in the coming days.
However, we may see a correction towards the 107.00 and any intraday bearish rejection would create an opportunity to enter the bullish trade.
In this market situation, a bullish daily close above the dynamic level of 20 EMA on a daily chart would be a good buying opportunity.
AUDUSD is still bearish from the 0.700 level. However, the price is getting support from the 20 EMA on the daily chart and moving higher.
To sell in this pair a daily close below the dynamic level of 20 EMA is important.
On the other hand, the 20 EMA carry may take the price above 0.700. As the 0.70 is a key resistance area, traders should be cautious to take a buy trade above this level.