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Weekly Outlook for 20 July 2020 to 24 July 2020

Despite the geopolitical uncertainty regarding the COVID-19 outbreak and US China trade war, there are several trading possibilities this week as the market is going through volatile market trends. Therefore, we might not see solid impulsive pressure in any direction but we can generate a good profit by increasing the number of trades and decreasing the profit target.

However, in every case, we should focus on a good risk-reward ratio and ignore every trait that does not meet our requirement

We are still in the middle of July. Therefore, compared to the closing of June and the opening of July we may see a great recent Movement in most of the major currency pairs.

Let’s start the Weekly forecast with EURUSD

EURUSD

The EURUSD has successfully managed to stay above the 1.1200 for several days that made it to test the 1.1450 level. Therefore, this week we may see a downside pressure if we see the daily close below the 1.1450.

Weekly Outlook for 20 July 2020 to 24 July 2020 1

The price action of EURUSD shows that the price is backed by strong bullish pressure from 1.1200 and the resistance of 1.1450. Therefore, if you see the price to move down below 1.1450 it might not sustain along. However, the test of 20 dynamic moving averages is logical based on the gravitational force.

GBPUSD

GBPUSD failed to break below the 1.2620 for a considerable period. Therefore, the price started to pick the level again and a daily close above it would increase the possibility of further bullish pressure. In that case, the price may test the 1.2770 resistance area.

Weekly Outlook for 20 July 2020 to 24 July 2020 2

However, the price is currently testing the 1.2620 resistance level and we should focus on how the price closes at this level. A daily close we know it would increase the bullish pressure and a daily close above it would alter the bearish market sentiment

USDJPY

USDJPY is very volatile at 107.00 level as there are several false breaks below it and a false upside movement after having it daily close above it. As a result, the price action suggests that the price may become indecisive at this level. Therefore, we should focus on how the price breaks below or above from this zone.

Weekly Outlook for 20 July 2020 to 24 July 2020 3
Weekly Outlook for 20 July 2020 to 24 July 2020 4

A daily close below 107.00 may create the bearish possibility with the target of 106.00 in this week as the price failed to stay above the level.

AUDUSD

AUDUSD is very bullish above the 0.700 level. Therefore, the price may continue higher in the coming days.

Weekly Outlook for 20 July 2020 to 24 July 2020 5

If we look at the prize structure of AUDUSD, we can say the price is getting support from the dynamic level of 20 EMA carried towards the 0.70 resistance level. As the price failed to sustain the bearish pressure from that level it is an indication that price has a higher possibility to move higher with the target of 0.7100

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