fbpx

Weekly outlook for 1 June to 5 June 2020

After almost 3 months of lock down and shutdown, many countries are deciding to start their regular business activity. Furthermore, after a lot of volatility and false moves, the market is back with liquidity. Therefore, we may see some solid movement this week. 

Let’s start the Weekly forecast with EURUSD-

EURUSD

The EURUSD price broke above the zone of 1.10 to 1.0783 with a daily close. Furthermore, the price is trading above the zone for more than three days. Therefore, as long as the price is trading above 1.10 the overall outlook is expected to remain bullish.

Weekly outlook for 1 June to 5 June 2020 1

As the price is trading above the 1.10 level some correction is pending. Therefore, the price may correct lower towards the 1.10 level again before pushing further upside pressure. 

GBPUSD

As the price is trading above the 1.10 level some correction is pending. Therefore, the price may correct lower towards the 1.10 level again before pushing further upside pressure. 

Weekly outlook for 1 June to 5 June 2020 2

As the price is trading above the dynamic level of 20 EMA and at the discounted level of the previous bearish leg, it has a higher possibility to continue higher in the coming days with the target of 1.2600.

To enter the trade, we will focus on short term bearish correction on the hourly chart to enter the trade.

USDJPY

The USDJPY price is trading below the 108.00 level with a lot of correction. As we know the correction in the price indicates an order block building. Therefore, a sharp move is expected at the price. However, any rejection from the 108.00 level might increase the bearish possibility.

Weekly outlook for 1 June to 5 June 2020 3
Weekly outlook for 1 June to 5 June 2020 4

On the other hand, if the price move sharply without testing the 108.00 level we will monitor the price for further price action.

AUDUSD

The AUDUSD almost recovered the COVID-19 loss that was more than 1000 pips. If we draw a Fibonacci level from this yearly high and yearly low we can see that the price is trading above the 50% level, which is a potential premium price level.

Weekly outlook for 1 June to 5 June 2020 5

Therefore, in order to remain bearish, the price must come back towards the 50% Fibo levels, otherwise, the overall outlook will remain bullish. 

Based on this recent price action context, the price has a strong bullish daily close above the resistance of 0.6672 level. Therefore, if the price fail to hold above the resistance and break below it with a daily close, we will look forward to selling with the target of 0.6450. 

Overall, this week we may see some solid movement as the market will see several economic releases. Furthermore, some volatility might be seen due to the recent geopolitical news from the US and China.

>