Forex Weekly Outlook- 10 May 2021 to 14 May, 2021
The weaker-than-expected Nonfarm Payroll made the US Dollar weaker against most of the major currencies. Therefore, as long as the Dollar weakness is in the market, we may expect some decent movement in major currency pairs.
Let’s start the forex weekly analysis with the EUR/USD:
EUR/USD faced decent support from 1.20 key level from where the static and dynamic support pushed the price higher. As a result, the price managed to have a daily close above 1.2060. However, the weaker NFP took the price higher but the price is still below the 1.2180 resistance level.
As long as the price is trading below the 1.2180 resistance level we may expect a bearish correction towards 1.2060 before pushing higher. On the other hand, any bullish daily close above the 1.2180 may alter the current market structure.
GBP/USD is pushing higher with a strong bullish daily close near 1.40 key resistance level. Moreover, the weaker NFP took the price higher above the 1.40 level where investors should wait for a daily close.
As long as the price is trading above the 1.40 level we are expecting another bullish leg upside. On the other hand, any bearish rejection below 1.40 may alter the current market structure.
USD/JPY managed to come lower below 109.00 level but investors should see how price reacts on this level on a daily candle.
Currently, the price managed to have a daily close below the dynamic 20 EMA where we should see a break below the candle’s low to increase the bearish possibility.
Bitcoin starts to move higher as soon as the price rejects the 50,000 level with a strong bullish daily close. Later on, the price showed further bearish rejection in the intraday chart that increased the bullish possibility.
As per the current price action, Bitcoin may move above the $60,000 level in the coming days.