Weekly Outlook for 24 August to 28 August 2020
The forex market has possibilities of several nice movements this week in most of the major currency pairs.
However, as it is the last week of the month, we may face some volatility or correction in the price.
Let’s start the forex weekly analysis with the EURUSD.
The EURUSD price is moving up with a lot of bullish intervention. Still, there is no sign of sellers of divergence in the price from 1.1700 to 1.1900 area.
Therefore, it is better to stick to the buying side until there is strong bearish momentum in the price.
However, the price became very volatile as soon as it reached the 1.1900 level but it failed to make a new low with dynamic support from the 20 EMA.
Therefore a daily close below 1.1700 will be the opportunity to start a bearish trend.
GBPUSD price is trading above the 1.2970 support area and the dynamic level of 20 EMA is approaching the price.
Therefore, based on the current market structure, the price has a higher possibility to continue upside.
However a bearish daily close below 1.2970 will start the bearish possibility, otherwise, we are bullish in this pair with the target of 1.3100
The USDJPY pair is bearish below the 106.00 level as long as the price is trading below this level on a daily candle.
Based on the current price action, any bullish rejection from 106.00 area on intraday chart may increase the probability of upcoming bearish pressure with the target of 103.00
USDCAD faced a long bearish pressure in recent days and the price is likely to face a correction this week. 1.3100 level would be potential for this week to test from where a short term bullish correction is expected.
However, as long as the price is trading above 1.3100 it may consolidate or a daily close below 1.310 will create room for 1.2950.