Forex Weekly outlook for 8 June to 12 June 2020
The global economy is back after a long period of the shutdown and lockdown.
Although the death rate is not satisfactory in some countries, there is no alternative to close the lockdown to make the economy stable.
The COVID-19 pandemic was started from China and spread to the world from March 2020. Still, there is no satisfactory cure for the disease; therefore, businesses that mostly depend on traveling are affected. As we know, the present world is dependent on other countries; therefore, limitations in travel will have for all of the domestic business activity in every country.
In this situation, It is hard to say the global economy has come to the regular action. Furthermore, the trade war between the US and China is still in the year that may keep the market volatile.
Let’s start the Weekly forecast with EURUSD
The EURUSD price broke above the 1.120 are with a daily close and currently trading between the range of 1.12 to 1.1450.
As the price is middle of the range, there is no satisfactory level to drive the price until it finds a top or bottom.
Last Friday’s candle indicates that the price is likely to move lower as it failed to test the 1.1450 level.
Therefore, we may see a bearish sentiment in the growth period of the week until it touches the 1.1200 level.
Furthermore, a daily close below 1.1200 would increase further Possibility in the price with the target of 1.100. moreover, a bearish rejection from the 1.1200 would strengthen the bullish Possibility with the goal of 1.1450
Bulls are powerful in the GBPUSD as the price manages to stay above the potential double top level with a daily close.
Furthermore, the uncertainty in the domestic violence around the US influenced investors to put their money in pounds rather than US dollars.
The GBPUSD price is showing some weakness below the 1.2770 resistance level. Therefore, any rejection from this level would create there is a Possibility in the price with the target of 1.2620
The USDJPY managed to break above the 109.20 resistance level with a daily close.
Therefore there is room for the price to test the 111.00 level in the coming days. The previous price action of USDJPY, the price rejected the level as soon as it gets above the 109.20 resistance level.
Therefore there is a father possibility of a false break with a daily close below the resistance level. In that case, the price may test the 108.30 level.
This week, we will monitor the 109.20 level as an essential price mover. Anywhere reservation from that level would be the potential to move higher or a daily close below each would increase the bearish Possibility.
The AUDUSD Price is powerful above the 0.6670 level as we broke the label with a massive bullish daily breakout and more the price toward the 0.700 fundamental level.
Currently, the price is showing some bullish failure at that level. So we made the price to move down as the bullish rally was solid and a correction is pending.
Investors would monitor the AUDUSD price about how it is reacting at the 0.700 area. We are expecting a consolidation t that level and a bearish possibility as soon as the price creates a new low.