Weekly Outlook for 29 June 2020 to 03 July 2020
This week, the market is going to face the closing of June and the opening of July. As we know from the concept of the market cycle there is a possibility of reversal and volatility due to the profit-taking of institutional traders.
Furthermore, COVID-19 is still keeping the global financial market volatility.Therefore, we made some decent reversal trade setup based on this month’s performance and a correction the following week.
Let’s start the Weekly forecast with EURUSD
As we mentioned last week, the EURUSD is trading above the 1.120 support level.
Therefore, as long as the price is holding that level, the overall outlook is bullish. We remained long last week and closed the trade with almost 70 pips.
However, this week’s price rebounded to the 1.12 level again but managed to have a daily close below it. Therefore, we are expecting another bullish pressure this week.
On the other hand, any daily close below 1.1200 would be the potential to drag the price more down with the target of 1.100.
In that case, traders should wait for a sufficient correction and a rejection from the 1.1200 level.
As we mentioned in last weeks report that the GBPUSD managed to have daily closed below 1.2480 after a bullish rejection.
Therefore, the price moved down with 140+ pips profit. Currently, the price is still trading below the 1.2480 resistance level where a test of support 1.2287 is pending.
Therefore, we may wait for an intraday bullish correction near 1.2480 level for a bearish continuation setup with the target on 1.2287.
USDJPY is trading at 107.00 event-level from last week and there is no clear direction right now.
However, there is a false break below the 107.00 level where bears failed to hold the price below that level on a daily basis.
In this market situation, a bullish daily close above the dynamic level of 20 EMA on a daily chart would be a good buying opportunity.
On the other hand, a bearish daily close below 107.00 would indicate the selling opportunity.
AUDUSD is still bearish from the 0.700 level. However, the price is getting support from the 20 EMA on the daily chart from where the price may get some bullish intervention.
However, the bearish sentiment might remain active as long as the price is trading below the 0.700 level.
This week, any bearish daily close below the dynamic level of 20 EMA would be a good selling opportunity in the AUDUSD price.