Weekly Outlook for 15 March to 19 March 2021
In this forex weekly outlook, we will discuss the fundamental and technical aspects of the financial market and possible trading opportunities.
This week, the Fed will meet for the first time after the COVID-19 stimulus program worth $380 billion. Moreover, the Bank of England and Bank of Japan will sit and we may expect some decent price direction in most of the major currency pairs.
Let’s start the forex weekly analysis with the EURUSD
EUR/USD is trading just below the 1.20 psychological event-level. Moreover, the price is within a bearish channel in the daily chart that may increase further bearish pressure in the price. However, we need to focus on what the Fed says about the economic policy of the US.
Currently, from the FOMC of this week, the Fed may provide a neutral tone about the interest rate decision but the current outlook about the stimulus and its effect would be the main focus for investors.
In this week’s FOMC, any dovish tone would be a strong reason for buying EURUSD. On the other hand if Fed Ramesh positive about the stimulus program there is a possibility that the tourist will immediately move down by shaking from 1.20
According to the recent statement, RBA said that the global economy is facing a recovery due to the implementation of the virus vaccine.
The economic recovery within Australia is going to be stronger than the expectation. The strong growth in employment with the decline of the unemployment rate at 6.4% is a strong achievement. Moreover, RBA expected a continuation of this recovery in 2021 and 2022 while the GDP may return to the mid-2019 level at the middle of this year.
However, in this week, AUDUSD will depend on how the Federal Reserve reacts to the stimulus program. Like the EURUSD, if you see any hawkish tone we may expect that the AUDUSD will down immediately.
Gold posters lower after the non-farm payroll please but the price currently becomes volatile as soon as it tested the 1700 level.
Currently, the volatility at the 1700 level is a primary indication of upcoming bullish possibility in the price. However, the price may set a direction after the FOMC
The Bitcoin rally was above the $60,000 high last week, but the price was short-lived and came down to $55,000 on Monday. Later on, the cryptocurrency was down as low as $53261.
The world’s top cryptocurrency is facing a supply crisis after miners’ reward halving in May 2020. Later on, after the institutional participation, the situation increased.
Currently, the market is shifting its timing where the first Fed interest rate decision is coming after the stimulus program. However, any dovish tone from Fed during the FOMC might create a bullish hope for Bitcoin bulls.
Currently, we can say that Bitcoin has a higher possibility of coming lower and the test $50,000. However, as long as the price is above the $50,000 level, it may create another bullish leg.
Over, the forex market may remain volatile this week and the upcoming FOMC would the main investors’ attraction.