Weekly Outlook for 23 March 2020 to 27 March 2020
Weekly Outlook contains economic news from all over the world including the US, the UK eurozone and Japan.
As we know the current coronavirus outbreak around the world is using a lot of pressure towards most of the central band including the Federal Reserve Bank of Canada and Bank of England.
Therefore, we may see a lot of volatility in the price. So traders are recommended to minimize lot size in trading.
The EURUSD price is going through a lot of volatility as we have seen a recent bullish pressure that has been recovered by the massive bearish pressure.
Currently, the price is below the important support level of 1.0789.
As the market volatility stays we may see the price to move up towards 1.10 in the coming days. Moreover, a bullish rejection from 1.10 may extend the current bearish pressure.
The GBPUSD price broke the historic level last week and currently below the level that was not seen in the last 30 years.
As the bearish pressure is very strong there is a higher possibility that the GBPUSD will continue the current momentum this Week.
Therefore, if we see the price to reach the 1.20 area we will look forward to selling to join the current rally.
In that case, a daily bullish rejection from 1.20 may increase the bearish possibility.
The USDJPY bears have been recovered by the recent 1000 pips rally that happened during the last two weeks. The stimulus program by the Bank of Japan also boosted the bullish sentiment.
Therefore, price has a higher possibility to continue higher in the coming days.
However, as the price moved from 101.00 level with massive bullish pressure there is a possibility that it will move down towards 108.50 before moving further upside.
The effect of coronavirus has affected New Zealand’s economy much but the RBNZ is confident about their economic policies.
Therefore, to fight the effect of coronavirus, RBNZ is encouraging investors by lowering interest rates.
So during the rate cut, NZDUSD consolidates rather than moving down impulsively.
To extend the correction, the price may test the 0.60 level again this week before setting further price direction.