Forex Weekly Outlook- 31 May 2021 to 04 June, 2021

Forex Weekly Outlook- 31 May 2021 to 04 June, 2021

Contents

Weekly Outlook for 31 May to 04 June, 2021

The forex market is shifting the trading environment from one month to another month. Therefore we may expect a lot of volatility and counter pressure during the week.

Moreover among fundamental releases there is any important not prepared report on Friday that may set a direction for the price. Another way is the price may experience extreme volatility this month and we are expecting a stable and sustainable growth from this week.

Let’s start the forex weekly analysis with the EUR/USD:

EUR/USD

The EUR/USD price became extremely volatile at the 1.22 key resistance level from where we are expecting a solid move.

The price already showed a decent bearish rejection last Friday with support from the dynamic 20 EMA on the daily chart. However, the price failed to show a strong bullish momentum at the 1.22 resistance area that creates the bullish possibility.

EUR/USD

In this market condition, the price has a higher possibility of continuing the bullish pressure with the target of 1.2380 level. Conversely, if the price comes below the dynamic 20 EMA with a bearish daily close we may expect further bearish pressure in the coming days.

GBP/USD

GBPUSD is moving within a range of 1.4236 to 1.4100 levels. Currently, the price is almost to the middle of this zone. Therefore, we remain on the sideline for this pair and wait for a solid breakout above or below this zone.

GBP/USD

Considering the breakout, we are at the monthly shifting phase where the price has a higher possibility of showing trend reversal momentum. In this context any bearish daily close below the 1.4100 support level may increase the bearish possibility to the price.

USD/JPY

USD/JPY remained corrective at the 109.69 resistance level which is a sign of a price reversal. However, the most recent bullish pressure remained strong that created a gap between the price and dynamic 20 EMA.

USD/JPY

Therefore, as long as the price is trading below the swing high of last week, we may expect a bearish trend towards 108.00 level in the coming weeks.

AUD/USD

The AUD/USD moved higher with an impulsive bullish pressure and managed to hold the price above the 0.7700 level. Currently, the price is facing a critical zone at the 100-day simple moving average. Therefore we may need to wait for an appropriate price action to see.

AUD/USD

Moreover, the price managed to have a daily close below the dynamic level of 20 EMA. As a result, the price has a higher possibility to move lower in the coming days.

Overall, this week we may have volatility in the price due to the monthly shift and any sign of a weaker-than-expected US report might increase the current volatility.

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