Forex Weekly Outlook- 07 June 2021 to 11 June, 2021
The global financial market is facing a broader US Dollar weakness where the recent Non-Farm Payroll boosting the momentum. Therefore, the momentum may continue this week where the US Dollar weakness is focused on by many traders’. Let’s have a look at possible price direction from The Forex Secret technical analysis.
Last week, US Non-Farm payroll came at 559K, below the expectation of 645K. However, the previous NFP was at 278K but the main price driver of Friday was the Unemployment rate that moved down from 6.1% to 5.8%
Let’s start the forex weekly analysis with the EUR/USD:
EUR/USD moved within a lot of volatility as soon as the price reached the 1.22 key resistance level. Later on, the price made a new low in the daily chart but the situation became complex as soon as the Non-Farm payroll was released.
Based on the recent market sentiment, the overall outlook is bullish as the Aroon Up reached the 100 level. Therefore, the price has a higher probability of testing the 1.2300 level as long as it is above the most recent low 1.2090.
In GBP/USD, the price is moving up within a long-term bullish trend where the price is currently trading within the range between 1.4300 to 1.4100. The recent bearish failure with weaker NFP influenced investors for an extension to the bullish correction in the price.
Based on the current price action, bulls may take the price higher above 1.4200 if the US economy missed a better CPI on Thursday.
AUD/USD remained stable above 0.7700 level with a strong bullish daily close, covering more than 90% of the last candle’s body.
Therefore, as long as the price is trading above the 0.7700 level with a bullish daily close, it has a higher possibility of moving up in the coming days.
Gold remained weak against the US dollar, despite the USD weakness. The price failed to hold a strong momentum above the 1900.00 key resistance level.
In this price context, we are not on a buy-side for gold. Instead, we will wait for the price to make any swing low to consider it as a strong bearish trend.
As per our findings, let’s see what might happen this week on fundamental releases:
- BOC Rate Statement on Wednesday- Hawkish Tone is expected
- ECB Monetary Policy Statement on Thursday- No change is expected
- ECB Press Conference on Thursday- might provide a direction for post COVID recovery.
- US CPI m/m on Thursday- may show a weaker than expected result.