The forex market is back with the volatility due to the COVID-19 second wave. Furthermore, the world economy is still under pressure, especially the Asian continent. The recent border kill in China may keep the Asian investor worried. However, the euro zone and US also keep providing negative economic releases, which is also enough to keep the market volatile.
Let’s start the Weekly forecast with EURUSD
Like the previous week, the EURUSD is trading within the range between 1.1450 to 1.1200. However, the price managed to move down towards the bottom of the price. Therefore, we may see a bearish rejection from the 1.1200 area that would be a potential buying opportunity 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.
Last week, GBPUSD bulls were powerful and managed to take the price towards the 1.2770 resistance area. Later on, bears managed to push the price down below 1.2400 level. However, the price is not facing any bottom right now. Therefore, it may test the 1.2287 support level in the coming days.
For this week, we may see the price to test 1.2484 level again and any bullish rejection from this level would create bearish possibility in the price with the target of 1.2287
As per our prediction, USDJPY managed to move down below the 108.00 level last week. However, at the closing of the week price managed to show a bearish rejection with a bullish daily close. The price is currently consolidating at 107.00 area.
In this price structure, we may see the price move up if it shows a new higher high above 107.00 level on the intraday chart. In that case, the primary target would be 109.00 level
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, the price may test the 0.6920 resistance area and any bullish rejection from that level would bring bearish momentum in the price with the target of 0.6689 support level.