Forex Weekly Outlook- 14 June 2021 to 18 June, 2021
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, Gold, and Bitcoin.
The forex market has shown some decent movement last week where the price started with a Dollar weakness but recovered on Friday. Moreover, this week, investors will see US Retail sales, and any sign of a better than expected result might increase the broad Dollar strength. On the other hand, any sign of a dovish tone in the FOMC may change the market sentiment.
Let’s start the forex weekly analysis with the EUR/USD:
EUR/USD broke below the dynamic 20 EMA on the daily chart with a new swing high. Therefore, the creator has an opportunity for sellers to take it towards the 1.200 key support level. As long as the price is trading below the dynamic level of 20 EMA we can say that the price will come lower in the coming days.
In the above image, we can see that the price is trading below the dynamic level of 20 EMA while the Aroon Down crosses over the Aroon Up and reaches 100 level.
Therefore, investors should find a reliable selling entry this week based on a trading strategy where the ultimate target would be 1.200 level.
GBP/USD remained within a long consolidation for a couple of weeks and finally showed some sign that sellers are taking control over the price. However, the price was still at the dynamic support level, and a strong bearish pressure was needed to confirm the bearishness.
In the above image, we can see the daily chart of GBPUSD, where the price is trading at the dynamic level of 20 EMA. Therefore any bearish Daily close below the dynamic level might take the price lower where the ultimate target for this week will be 1.400 level.
Gold is trading with a lot of downside possibilities as the price failed to sustain its bullish momentum above the 1900.00 level. Therefore as long as the price is trading below the 1900.00 level, we may expect that it may come lower in the coming days.
In the above image, we can see the daily chart of Gold where the price moved lower below the 1880 level where a bearish daily close is pending. If the daily close happens bearish the price may come lower towards the 1800 level this week.
Bitcoin remained opposite to other financial instruments. The price showed a bullish sign by having a bullish daily close above the 36000.00 level. Therefore, the price may grow higher as long as it is trading above the dynamic level of 20 EMA.
In the above image, we can see the daily chart of Bitcoin that moved above the dynamic level of 20 EMA with a daily close. However, the price is still below the 40,000.00 resistance level and any bullish daily close above this level may take the price higher towards the $60,000 level.
Overall, this week is significant for traders due to having a lot of financial releases. However, investors should be careful of the excessive volatility from the current geo-political condition and the effect of Post-Covid recovery.