Forex Weekly Outlook- 12 July to 16 July, 2021
The forex market is moving within a lot of volatility where a lot of economic events are pending this week. However, the main investors’ focus for this week will be how the US economy is heading in terms of inflation.
Any sign of this week’s CPI above 4% would indicate that the US economy is going through a situation where the Fed should come back from the current momentum regarding inflation.
Let’s start the forex weekly analysis with the EUR/USD:
EUR/USD failed to hold the bearish momentum as the price moved above the 1.1849 support levels with a regular divergence in the price.
Therefore, this week, we are expecting a bullish pressure in the price where the primary price direction would be 1.1977 resistance level. Conversely, a bearish daily close below the 1.1849 level may alter the current market structure.
GBP/USD moved higher like the EUR/USD but the price is facing a minor resistance from the dynamic 20 EMA. As long as the price is trading at the dynamic 20 EMA we can expect a correction in the price.
As per the above image, we should find a stable price above the dynamic 20 EMA to consider the upcoming price direction as bullish. Otherwise, the target for upcoming selling pressure would be 1.3680 level.
Gold is moving higher as we expected last week. The price failed to hold the bearish momentum below the 1765.00 level with a bullish daily close.
However, the price is currently trading below the 1814 level and a daily close below the dynamic 20 EMA may change the price direction from bullish to bearish.
Bitcoin is trading within the range between 40,000 to 30,000 level and as long as the price is trading within this level there is a possibility of extending the currention.
For this week, investors should wait and find a stable price above the 40,000 level to consider the upcoming price pressure as bullish. On the other hand, a stable price direction below the 30,000 level may alter the current market pressure.