EUR/USD Weekly Forecast (27th July 2020 – 31th July 2020)

Fundamental view:

In the past week, EU German PPI monthly report at 20th July stressed the pair and created a bearish trend for the pair whereas EU German 30-y Bond Auction and US HPI monthly report at 22nd July and EU German GfK Consumer Climate bullish move on 23rd July impacted the pair positively creating a bullish trend.

As per the recent Euro summit, European Union (EU) hardliners are reportedly ready to accept EUR 390 billion in grants on corona virus recovery fund. This comes after the earlier Reuters report that the Frugal Four are ready to accept EUR 390 billion in grants and EUR 360 billion in loans, this update favoured the pair in the week. Hence EUR/USD showed a bullish trend last week. The pair has broken the March 2020 high of 1.1495.

The major economic events deciding the movement of the pair in the next week are Spanish Unemployment Rate, US CB Consumer Confidence at Jul 28, FOMC Press Conference at Jul 29, German Prelim GDP quarterly report, US Advance GDP quarterly report, Unemployment Claims at Jul 30.

EUR/USD Weekly outlook:

Technical View:

Last week’s high was 1.8% higher than the previous week. Maintaining high at 1.1658 and low at 1.1402 showed a movement of 256 pips.

In the upcoming week we expect EUR/USD to show a bullish trend. The currency pair is trading above the 200 Simple Moving Average and the MACD trades to the upside. A solid breakout above 1.1741 may open a clean path towards 1.1827 and may take a way up to 1.1996. Should 1.1485 prove to be unreliable support, the EURUSD may sink downwards 1.1316 and 1.1230 respectively. Chart formation of a Bullish Pennant in H4 chart sets prospects for a bullish trend. Bullish Hammer formation in H4 chart escalates the expectation for a bullish trend.

Preference
Buy: 1.1632 target at 1.1825 and stop loss at 1.1481

 

Alternate Scenario
Sell:  1.1481 target at 1.1314 and stop loss at 1.1632

BTC/USD Weekly Forecast (27th July 2020 – 31th July 2020)

Fundamental view:

The recent update that Chinese and Russian effort to change the global reserve currency and the fact that Federal Budget deficit prints new record amount pressurizes the Safe haven asset whereas The U.S. Office of the Comptroller of the Currency (OCC) has opened the door for federal savings associations and national savings banks to hold crypto currencies on behalf of their customers, this news brings positive sentiments for BTC.

The spike of covid 19 along with many other catalysts creates downtrend for USD. GBP/USD showed a bullish trend.

The major economic events deciding the movement of the pair in the next week are Durable Goods Orders monthly report at Jul 27, CB Consumer Confidence at Jul 28, FOMC Press Conference at Jul 29, Advance GDP quarterly report, Unemployment Claims at Jul 30, Revised UoM Consumer Sentiment at Jul 31 for US.

BTC/USD Weekly outlook:

Technical View:

Last week’s high was 3.66% higher than the previous week. Maintaining high at 9661.2 and low at 9114.5 showed a movement of 546 pips.

In the upcoming week we expect BTC/USD to show a bullish trend.  The currency pair is trading above the 100 Simple Moving Average and the MACD trades to the upside. A solid breakout above 9771.4 may open a clean path towards 9989.6 and may take a way up to 10318.1. Should 9224.7 prove to be unreliable support, the BTCUSD may sink downwards 8896.2 and 8678 respectively. In H4 chart, formation of bullish wedge and Inverted hammer constructs a bullish outlook for the pair in the upcoming week.

Preference
Buy: 9523.2 target at 9981.7 and stop loss at 9215.7

 

Alternate Scenario
Sell:  9215.7 target at 8685.2 and stop loss at 9523.2

XAU/USD Weekly Forecast (27th July 2020 – 31th July 2020)

Fundamental view:

The recent update that Iran and China on verge of a huge deal and China forges new trading partnerships with other countries impacts dollar negatively and along with Spike in US Covid-19 cases              

And Fed officials raising concern about the sustainability of the economic recovery makes safe haven asset to struggle. Also Historic EU deal supported for gold.

Amid all the catalysts impacting the USD negatively, last week portrayed a bullish trend for XAU/USD.

The major economic events deciding the movement of the pair in the next week are Durable Goods Orders monthly report at Jul 27, CB Consumer Confidence at Jul 28, FOMC Press Conference at Jul 29, Advance GDP quarterly report, Unemployment Claims at Jul 30, Revised U9oM Consumer Sentiment at Jul 31 for US.

XAU/USD Weekly outlook:

Technical View:

Last week’s high was 5.05% higher than the previous week. Maintaining high at 1906.5 and low at 1805.5 showed a movement of 1010 pips.

In the upcoming week we expect XAU/USD to show a bullish trend.  The currency pair is trading above the 100 Simple Moving Average and the MACD trades to the upside. A solid breakout above 1936.1 may open a clean path towards 1972.1 and may take a way up to 2037.7. Should 1835.7 prove to be unreliable support, the XAUUSD may sink downwards 1770.2 and 1734.8 respectively. In H4 chart breakout of a Pennant pattern favors prospects of a bullish trend. Also to be noted Three white soldiers formation exerts the expectation of uptrend for the pair.

Preference
Buy: 1895.5 target at 1955.9 and stop loss at 1841.6

 

Alternate Scenario
Sell:  1841.6 target at 1765.2 and stop loss at 1895.5

AUD/USD Weekly Forecast (27th July 2020 – 31th July 2020)

Fundamental view:

US New Home Sales at 24th July created a bearish trend whereas Australia RBA Gov Lowe Speech at 21st July, Australia Retail Sales monthly report at 22nd July, US Unemployment Claims at 23rd July, Australia Flash Manufacturing PMI at 23rd July created bullish trend for the pair.

Optimistic speech of RBA Deputy Gov Debelle last week also created a favorable atmosphere for AUD hence AUD/USD showed a bullish trend last week. The pair has broken the July 2019 high of 0.7081.

The major economic events deciding the movement of the pair in the next week are Reserve Bank of Australia Assist Gov Kent Speaks, US CB Consumer Confidence at Jul 28, Australia Trimmed Mean CPI quarterly report, FOMC Press Conference at Jul 29, US Advance GDP quarterly report, Unemployment Claims at Jul 30.

AUD/USD Weekly outlook:

Technical View:

Last week’s high was 2.06% higher than the previous week. Maintaining high at 0.7182 and low at 0.6972 showed a movement of 210 pips.

In the upcoming week we expect AUD/USD to show a bullish trend. The currency pair is trading above the 100 Simple Moving Average and the MACD trades to the downside. A solid breakout above 0.7201 may open a clean path towards 0.7297 and may take a way up to 0.7411. Should 0.6991 prove to be unreliable support, the AUDUSD may sink downwards 0.6877 and 0.6781 respectively. In H4 chart, formation of an Ascending Scallop chart favors prospects of a bullish trend. Also to be noted Spinning Top formation exerts the expectation of uptrend for the pair.

Preference
Buy: 0.7095 target at 0.7294 and stop loss at 0.6981

 

Alternate Scenario
Sell:  0.6981 target at 0.6791 and stop loss at 0.7095