Weekly Forex Outlook for 16 March to 20 March
The overall forex market is very volatile due to the current uncertainty regarding the coronavirus outbreak.
Therefore, there is a possibility of market volatility and uncertainty until the whole week.
Despite the current uncertainty, there is a possibility of a nice market movement in most of the currency pairs.
Moreover, the volatility index also supports the forex market. Therefore, we may see some decent movement this week.
The price of EURUSD faced a massive bearish pressure and had a daily close below the 1.20 area. Currently, the price is within the range of 1.10 to 1.12.
Therefore, there is a higher possibility that the price will move up and therefore, any bullish rejection on intraday from 1.12 area may create bearish pressure in the price.
The GBPUSD price faced an impulsive bearish pressure last week.
Therefore, there was a huge gap between the price and the dynamic level of 20 EMA.
Therefore, price has a higher chance to move up as a mean reversion before continuing further down.
Therefore, if we see the price to reach 1.2745 and a bearish rejection from this level may create bearish sentiment.
The USDJPY is moving up with counter impulsive pressure as the market is very uncertain regarding the coronavirus outbreak.
Therefore, there is a higher possibility that the USDJPY will move towards 108.50 in the coming days.
Therefore, if we see a bearish rejection from the near term support level at 106.50 we will look forward to buying.
The USDCHF price is within a long term bearish trend. The price action last week was a correction of the bearish trend.
Therefore price has a higher chance to move down after testing the resistance level at 0.9600.
If we see the price to reach the 0.9600 and show bullish rejection we will look forward to selling with the target of 0. 9185.