Forex Weekly Outlook- 13 December to 17 December
In the forex weekly outlook, we will see the possible market movement in most of the major currency pairs, including the EUR/USD, GBP/USD and Bitcoin.
There are some important releases this week. Bank of England Gov Bailey Speaks, USD PPI m/m, RBNZ Gov Orr Speaks, volatility is often experienced during his speeches, BOC Gov Macklem Speaks, ECB Press Conference, it’s the primary method the ECB uses to communicate with investors regarding monetary policy. It covers in detail the factors that affected the most recent interest rate and other policy decisions.
Let’s see what we have got for the coming week from the EURUSD:
EUR/USD has been very impulsive for the past few months. This week EUR/USD started with a bearish momentum. There might be a possible correction above the 1.1200 key level as the gap between the dynamic 20 EMA and the price is extending.
In the picture above, we can see that the current price is trading below the dynamic 20 EMA and below the 1.1300 key level with a bearish momentum, which indicates a sell for the time being. However, a break above the 1.1375 level with a bullish closed candle may alter the market condition.
The bearish pressure has been very impulsive for GBP/USD for the last few months. This week started with a bearish momentum as well. The current price of GBP/USD is trading below the 1.3300 key level. A break above the 1.3300 key level with a closed candle indicates buying opportunity. On the other hand, if the price goes below the 1.3180 level, the selling pressure would increase.
In the chart above, we can see that the GBP/USD is trading below the dynamic 20 EMA with a bearish momentum. Considering the overall market structure, the investors should focus on finding a buy at the moment.
After a lot of volatility the current price of XAU/USD is trading above the 1768.00 support level and below the 1813.68 resistance level. There is a fight going on between the bulls and the bears to take over.
In the picture above, we can see that the current price of XAU/USD is trading parallely with the dynamic 20 EMA. Considering the overall market structure, we can say that a break above the dynamic 20 EMA may create a buying opportunity. On the other hand, a break below the 1768.00 level with a bearish daily close would push the price lower towards the 1724.00 area.
The bulls have been dominating the price for the last few weeks. The current price of BTC/USD is trading below the 55000.00 key level with a bearish momentum. The investors should focus on finding a sell at the moment.
In the picture above, we can see that the current price of BTC/USD is trading below the dynamic 20 EMA with a bearish momentum. The extended gap between the price and the dynamic 20 EMA indicates the possibility of a bullish correction in this pair, which may alter the market condition.
Overall, there is a possibility of a decent price movement for both bulls and bears.