Forex Weekly Outlook- 24 May 2021 to 28 May, 2021
The Global forex market is facing a lot of volatility due to the absence of liquidity but it is traders’ duty to identify the price pattern and behavior to sustain with the momentum. Despite the volatility, we may expect some good momentum in most of the major currency pairs this week.
Unlike other weeks, we may expect an absence of important releases this week from most of the central banks except the Reserve Bank Of New Zealand. RBNZ cash rate is going to be published this week and investors are not expecting a nice surprise movement due to the post-Covid situation. Moreover, the Indian variant is keeping the market volatile in most of the Asian continents, where Australia and New Zealand are the main focal points for investors. Besides we will see the PCE inflation and a second revision of the Q1 GDP for the US dollar.
Let’s start the forex weekly analysis with the EUR/USD:
The EUR/USD price is moving higher with a long-term uptrend the price makes new higher highs. Despite the bullish movement in the price, it became volatile after it got tested from the dynamic levels of 20 EMA on the daily chart.
However, the price is currently trading below the 1.2168 event-level from where any strong breakthrough below this level with a daily close may initiate a bearish movement to the price. In that case, the primary target would be 1.2052 level for this week.
Unlike the EUR/USD the GBP/USD has already made a high at 1.4232 that became a strong resistance for sellers. The price already made multiple rejections from this level but to confirm the bearish possibility we need more confirmation.
Based on the current price action any strong bearish daily close below 1.4130 may initiate a bearish rally where the primary target would be towards the 1.400 level.
The gold became bullish due to the absence of a significant price driver from the US Dollar. Moreover, the safe-haven nature of the gold worked as a booster to the price besides the result from the US treasury yield.
However, the price became volatile below the 1900.00 level with a lot of correction to the price. Based on this price structure any bearish daily close below the most recent swing level of 1874.23 level may initiate the bearish pressure where the primary target would be the 1814.00 level.
Bitcoin moved lower with an impulsive bearish pressure that came from the market sentiment of Beijing’s closure to the crypto-related payment services. Moreover, before that Elon Musks’ sentiment worked as a primary wave of the bearish pressure in Bitcoin.
However, the price became volatile as soon as it reached the $30,000.00 level before becoming volatile. As long as the price is trading above the $30,000.00 level, it has a higher possibility of testing the $47,000.00 level in the coming weeks.
Overall, there is a decent possibility of showing price movement this week where most of the major currency pairs may show a dollar strength as a correction.