Weekly Outlook for 07 September to 11 September 2020
It is the second week of September where the NFP was released and its impact is still pending in the market.
Moreover, the global economy is facing a robust recovery from the COVID-19 pandemic that may keep the liquidity stable in the market.
However, there is enough opportunity in the market with a solid price development in most of the major pairs.
Let’s start the forex weekly analysis with the EURUSD
EURUSD price is consolidating between 1.1900 to 1.1700 area followed by an impulsive bullish pressure. Therefore, any breakout above 1.1900 has a higher potentiality to move upside in the coming days.
Therefore, any bearish rejection at the 1.1700 area with a daily close would be a potential buying opportunity in this pair. However, a strong breakthrough below 1.1700 may alter the current market structure.
While EURUSD was consolidating, GBPUSD got a false break above the 1.3300 resistance area. As the price managed to have a daily close below 1.3300 the bullish potentiality has reduced for this week.
Moreover, as it is just the beginning of September and there is more room for bearish correction, we are expecting that the price may come down towards the 1.2970 area. Therefore, a strong bearish daily close below 1.3150 would increase the possibility of bearish correction for this week.
AUDUSD got a bearish daily close below 0.7300 key resistance but the breakout failed to exceed the 50% candles body. In that case, any further downside pressure is expected to be a correction of long term bullish rally.
However, as long as the price is trading below 0.7300 we are expecting that the price may move lower in the coming days towards 0.7200 this week.
Among other major pairs, USDCAD seems to break above the 1.3100 support level. Therefore, any bullish daily close in the USDCAD pair above 1.3100 would bring the price more up towards 1.3400.
However, a bullish rejection from 1.3100 and a bearish daily close below 1.3100 would create more room to fall down towards the 1.2950 area.