The forex market is going through a monthly closing and opening this week where a decent market reversal is expected in most of the major currency pairs. However, the momentum of this week is expected to be weaker compared to the movement in this month.
Let’s start the forex weekly analysis with the EURUSD.
EURUSD is facing resistance at the 1.1900 area from where a market reversal or correction is expected towards the downside with the target of 1.1750.
Therefore, as long as the price is trading below 1.1900 we will be looking forward to selling on an intraday basis. However, a daily close above 1.1900 would alter the current scenario.
GBPUSD is trading above the 1.3300 resistance area. However, the price is likely to lose momentum above this level during the monthly close that may put bearish pressure on the price.
Therefore, the price may move down towards the 1.3150 area from where bullish price action is expected.
The USDJPY is trading below the 106.00 resistance area and as long as the price is trading below 106.00 level the overall outlook might be bearish with the target of 105.00.
However, a daily close above 106.00 would alter the current market structure.