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Forex Weekly Outlook for 3 February to 7 February 2020

The weekly forex outlook includes important releases from the US with the Unemployment rate and ISM manufacturing and Non-manufacturing PMI. Moreover, the RBA will seat and hold the interest rate decision. As the first week of the month, some correction is expected with lots of volatility due to the recent fear of deadly coronavirus.

Let’s have a look at the weekly technical outlook

EURUSD

As we have discussed at our previous weekly commentary, the EURUSD pair rebounded from the potential 1.1 area. Currently, the price is hovering between important 1.1090 to 1.1070 area.

The recent price action indicates that the price is likely to move higher with the target of 1.1170. However, the challenge is to overcome the neckline of the recent head and shoulder pattern of the daily time frame. Therefore, 1.1070 is a critical zone that may attract both buyers and sellers.

Forex Weekly Outlook for 3 February to 7 February 2020 1

Therefore, we will monitor the price action on the intraday chart and if we find any bearish rejection as well as some correction near the support level of 1.1070 we will look forward to buying with the target of 1.1170. On the other hand, volatility and a bearish daily candle below 1.1070 may push the price to test the potential 1.10 level again.

GBPUSD

The GBPUSD managed to extend the triangle pattern before moving breakout at the upside. Currently, the price is the potential for more upside movement.

Forex Weekly Outlook for 3 February to 7 February 2020 2

As we have seen the price is on along term bullish uptrend and the breakout happened towards the buyers' territory as well. Therefore, the chance of moving higher has much potential than sell. Therefore, to take entry we will wait for the price to come near the breakout level again and after bearish rejection on the intraday chart, we will hit the buy button with the target of 1.3339. However, if the price closed below 1.3100 with a daily close the price may continue the range with the target of 1.300

USDJPY

In a long term volatile structure, the USDJPY is much potential to extend the current correction with the target of 107.80 as long as the price remained below the 108.84 level.

Forex Weekly Outlook for 3 February to 7 February 2020 3

In a long term volatile structure, the USDJPY is much potential to extend the current correction with the target of 107.80 as long as the price remained below the 108.84 level.

NZDUSD

The NZDUSD has become very tricky this week. If we see the price structure, we may see a massive bullish breakout from the potential 0.6450 area. Without making any further retest the price moved nearly 300 pips and currently down to the breakout zone now.

Forex Weekly Outlook for 3 February to 7 February 2020 4

Therefore, it is important to see how buyers at this level react to the price action.  If we see any strong bearish rejection from the 0.6450 level we will look forward to buying with the target of recent high at 0.6700. On the other hand, the sentiment from coronavirus and fear of global economic slowdown may drag the price below 0.6450 with a daily close. In that case, we will look forward to selling with the target of 0.6328

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