Weekly Outlook for 18 May 2020 to 22 May 2020
The second wave of COVID- 19 is already in the air. Moreover, the trade war between the US and China is reactivated.
Therefore, market volatility and uncertainty may increase.
Earlier that the initial jobless claims were at roughly 30 million. Overall, there is still hopes that the situation may recover
Let’s start the Weekly forecast with EURUSD
The EURUSD price rejected the 1.0783 level once again with a bullish daily close but failed to move higher as it is rejected the dynamic level of 20 EMA on the daily chart.
Therefore, the price has a possibility to move down as bulls don’t have enough power to take the price up.
In this market condition, a strong daily close below the 1.0783 support level may drag the price more down.
However, a strong bullish daily close above the dynamic level of 20 EMA may reactivate the bullish scenario.
The GBPUSD bears were powerful last week and managed to move the price below the 1.2200 support level.
Therefore, the price has a higher possibility to move down in the coming days.
In that sense, we may see the price to test the 1.2200 levels again to create a potential shorting opportunity.
On the other hand, a daily close above the 1.2200 may alter the current market structure.
The USDJPY price moved lower at 106.50 support level and managed to have a bullish daily close above it.
As the bears failed to hold the market below that level, we may experience an upcoming bullish pressure in the price. In that case, our primary target would be the 108.30 area.
On the other hand, a strong daily close below 106.50 may drag the price more down towards 105.80 levels.
The AUDUSD moved higher with an impulsive bullish pressure and managed to hold the price above the 0.6450 level.
Currently, the price is facing a critical zone at the 100-day simple moving average. Therefore we may need to wait for an appropriate price action to see.
Moreover, the price managed to have a daily close below the dynamic level of 20 EMA. As a result, the price has a higher possibility to move lower in the coming days
Overall, this week we may volatility in the price due to the second wave of COVID- 19 and trade war sentiment. Moreover, any positive news regarding the cure of COVID-19 may bring liquidity in the market.