The fear of coronavirus is keeping the Asian market from gaining further momentum. Therefore, we may see a dovish tone from RBNZ in this week’s policy meeting. Besides, the only central bank meets there are several important releases from the US, UK, and European Union.
Get trading ideas about your favorite currency in the FOREX WEEKLY OUTLOOK FOR 10 FEBRUARY TO 14 FEBRUARY 2020
As we mentioned in our last commentary, EURUSD managed to rebound from 1.1070 to 1.1090, 20 pips zone. Currently, we expecting the price to come down towards 1.0920 and even at 1,0850. However, the price may take some bullish momentum at the starting of the week due to make a correction. Therefore, any intraday rejection from any near term level will be a good opportunity to enter the major sell momentum for the week.
The price of GBPUSD has gone through a lot of volatility last week after a bullish breakout from the triangle pattern and getting inside the triangle again.
The false break was towards the bullish side. Therefore, we expecting the price to move more down this week with the target o 1.2800. So if we see any bullish rejection on the intraday chart from 1.2960 we will be looking forward to selling with the target of 1.2800.
This is the most awaiting currency pair for this week. Due to the recent increase of coronavirus infections, RBNZ is expected to provide a dovish tone for this week. If this happens, we may see the NZDUSD come down towards 0.6328.
As the overall outlook is bearish, we will monitor the price action from the beginning of the week. If we see any bullish rejection after some correction towards the 0.6340 area we will be looking forward to selling for this week.
In a long term volatile structure, the USDJPY is much potential to extend the current correction with the target of 107.80 as long as the price remained below the 108.84 level.
After the massive bullish impulsive movement. USDCAD is currently going through a consolidation. As the current bullish momentum is seems like complete we will be looking forward to sell for this week if the price reaches the resistance of 1.3340 with a bearish daily close. In that case, our target would be towards the 1.3200.
Gold is acting like a safe haven currenty from the last week. Despite the strong NFP we have seen a bullish momentum in Gold due to the recent increase in coronavirus affection.
For this week, we may see some correction in Gold. 1572 will be a significant event level for Gold for this week. If we see any bullish rejection from that level we may see the Gold price to test the 1550 support again. However, a strong breakout above the 1572 will continue the current bullish momentum.