Weekly Outlook for 17 August to 21 August 2020
The global financial market is recovering from the COVID-19 impact, where most of the country’s central bank is providing a stimulus program to keep financial stability.
In this situation, investors should know how the stimulus program is affecting the money market.
However, as it is the middle of August we may see some decent movement in most of the major currency pairs. Let’s start the forex weekly analysis with the EURUSD.
EURUSD price is moving upside within a strong bullish trend where the price is currently trading above the 1.1800 support area.
Moreover, the price is getting dynamic support from the 20 EMA in the 1.1700 area.
Therefore, any bearish correction is the potential buying opportunity in the EURUSD pair as long as the price is trading above the 1.1700 support area.
In that case, we should focus on intraday charts to see a reliable bearish rejection to join the bullish rally.
GBPUSD price is also moving within a strong uptrend like the EURUSD. Moreover, the 20 EMA is approaching the 1.2970 support area to increase further bullish possibilities.
As long as the price is trading above the 1.2970 support area it is likely to move higher in the coming days.
USDJPY is moving downside within a corrective bearish trend. However, the price make a strong break above the 106.00 support area and is still trading above this level.
As the overall outlook is bearish a daily close below 106.00 is important to enter the trade with the target of 103.00
Like EURUSD and GBPUSD, AUDUSD is moving upside with a corrective speed. As long as the price is getting support from the dynamic level of 20 EMA from the daily chart, the price is likely to test the 0.7300 resistance area.
However, a strong breakthrough below 0.7100 area might alter the current market structure.