BTC/USD Weekly Forecast (20th July 2020 – 24th July 2020)

Fundamental view:

The recent update that Governments will issue their own digital currencies and regulatory future remaining difficult for digital coins made Bitcoin to lose its value against USD and The recent incident of twitter account hacking of high-profile accounts such as those of former president Barack Obama, Tesla CEO Elon Musk, Bill Gates, Warren Buffett, and even companies like Apple and Uber tweeting messages about Bitcoin donations also impacted the market. BTC/USD showed a bullish trend.

Recent news on crypto like chain link fraud and Bitcoin donations asked by hacked twitter accounts creates negative sentiment on Bitcoin and we expect a downtrend for BTC/USD ahead.

The major economic events deciding the movement of the pair in the next week are Existing Home Sales, Crude Oil Inventories at Jul 22, Unemployment Claims, CB Leading Index monthly report at Jul 23, US Flash Manufacturing PMI at Jul 24 for US.

BTC/USD Weekly outlook:

Technical View:

Last week’s high was 1.4% lower than the previous week. Maintaining high at 9320.4 and low at 9013.4 showed a movement of 307 pips.

In the upcoming week we expect BTC/USD to show a bearish trend.  The Instrument is trading above the 100 Simple Moving Average and the MACD trades to the downside. A solid breakout below 8994.4 may open a clean path towards 8850.4 and may take a way down to 8687.4. Should 9301.4 prove to be unreliable resistance, then it may raise upwards 9464.4 and 9608.4 respectively.  In H4 chart, formation of Expanding Triangles and Bearish harami constructs a bearish outlook for the pair in the upcoming week.

Preference
Sell: 9194.5 target at 8901.2 and stop loss at 9310.2

 

Alternate Scenario
Buy: 9310.2 target at 9595.5 and stop loss at 9194.5

AUD/USD Weekly Forecast (20th July 2020 – 24th July 2020)

Fundamental view:

US Federal Budget Balance at July 13 and US Industrial Production monthly report at July 15 created a bearish move for the pair whereas NAB Business Confidence at July 14 supported AUD and US Unemployment Claims at 16th June acted as a catalyst for the downtrend move for dollar and boosted bullish move for the pair. Improvement in the cases of corona virus and steps taken by the country for economic recovery creates optimism for Aussie among investors.

US – Sino tension and Fear of second wave of corona virus puts dollar under pressure in the past week AUD hence AUD/USD showed a bullish trend.

The major economic events deciding the movement of the pair in the next week are RBA Gov Lowe Speaks and Australia Monetary Policy Meeting Minutes at Jul 21, MI Leading Index, US Crude Oil Inventories at Jul 22, National Australia Bank (NAB) Quarterly Business Confidence, US Unemployment Claims at Jul 23, US Flash Manufacturing PMI at Jul 24.

AUD/USD Weekly outlook:

Technical View:

Last week’s high was 0.53% higher than the previous week. Maintaining high at 0.7037 and low at 0.6921 showed a movement of 116 pips.

In the upcoming week we expect AUD/USD to show a bearish trend. The MACD trades to the downside and the currency pair is trading above the 200 Simple Moving Average. A solid breakout below 0.6932 may open a clean path towards 0.6868 and may take a way down to 0.6816. Should 0.7048 prove to be unreliable resistance, the AUDUSD may raise upwards 0.7101 and 0.7165 respectively. In H4 chart, formation of an Inverse head and shoulders pattern chart favors prospects of a bearish trend. Also to be noted 3 white soldiers formation exerts the expectation of downtrend for the pair.

Preference
Sell: 0.7016 target at 0.6919 and stop loss at 0.7066

 

Alternate Scenario
Buy:  0.7066 target at 0.7172 and stop loss at 0.7016

EUR/USD Weekly Forecast (20th July 2020 – 24th July 2020)

Fundamental view:

FOMC Member Williams Speaks at Jul 16 acted as a catalyst for bearish move of the pair whereas ZEW Economic Sentiment at Jul 14 and Final Core CPI yearly report at Jul 17 framed a bullish move for the pair .The rising cases of Covid 19 cases in US has created a fear of second wave of virus and hence pressuring USD against EUR.

With US economy struggling to start with the rising cases of Covid 19 in the past week, EUR/USD showed a bullish trend.

The major economic events deciding the movement of the pair in the next week are Europe German Buba Monthly Report at Jul 20, US Crude Oil Inventories at Jul 22, US Unemployment Claims at Jul 23, French Flash Services PMI, Europe Flash Services PMI, USD Flash Manufacturing PMI at Jul 24.

 EUR/USD Weekly outlook:

Technical View:

Last week’s high was 0.72% higher than the previous week. Maintaining high at 1.1452 and low at 1.1301 showed a movement of 151 pips.

In the upcoming week we expect EUR/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 1.1487 may open a clean path towards 1.1545 and may take a way up to 1.1638. Should 1.1336 prove to be unreliable support, the EURUSD may sink downwards 1.1243 and 1.1185 respectively. Breakout of the Flag to the upside in H4 chart sets prospects for a bullish trend. Bullish Spinning tool formation in H4 chart escalates the expectation for a bullish trend.

Preference
Buy: 1.1470 target at 1.1597 and stop loss at 1.1398

 

Alternate Scenario
Sell:  1.1398 target at 1.1263 and stop loss at 1.1470

GBP/USD Weekly Forecast (20th July 2020 – 24th July 2020)

Fundamental view:

UK BOE Gov Bailey Speaks at Jul 13 and July 17 supported Pound and lead to uptrend of the pair whereas FOMC Member Harker Speech at Jul 15 and FOMC Member Williams Speech at Jul 16 strengthened greenback and acted as a catalyst for the downtrend of the pair. Outcomes of monthly reports like Industrial Production and Index of Services did not support sterling.

Amid all the negative sentiments in UK last week the pair showed a bearish move.

The major economic events deciding the movement of the pair in the next week are UK Public Sector Net Borrowing at Jul 21, US Crude Oil Inventories at Jul 22, US Unemployment Claims at Jul 23, UK Retail Sales monthly report, UK Flash Services PMI, US Flash Manufacturing PMI at Jul 24.

 GBP/USD Weekly outlook:

Technical View:

Last week’s high was 0.02% lower than the previous week. Maintaining high at 1.2666 and low at 1.2479 showed a movement of 187 pips.

In the upcoming week we expect GBP/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 1.2661 may open a clean path towards 1.2757 and may take a way up to 1.2848. Should 1.2474 prove to be unreliable support, the GBPUSD may sink downwards 1.2383 and 1.2288 respectively. Chart formation of Gartley pattern formation in H4 chart favors prospects of a bullish trend. Bullish spinning tool formation escalates the expectation for a bullish trend.

Preference
Buy: 1.2545 target at 1.2688 and stop loss at 1.2471

 

Alternate Scenario
Sell:  1.2471 target at 1.2284 and stop loss at 1.2545