Weekly Forex Forecast - EURUSD, EURJPY, OIL 31 July To 4 August 2023

Weekly Forex Forecast EURUSD

At the conclusion of the last trading week, the EUR/USD was near its lows as economic data from the U.S. sparked a flurry of activity in the Forex market.

On early Friday, the EUR/USD dropped to approximately 1.09450, retreating from its weekly high of 1.11500 reached on Thursday. The currency pair’s significant price range was consistent with other major currency pairs, reflecting the volatility of the USD during the last two days of the week. The initially optimistic upward movement of the EUR/USD was met with a wave of selling following stronger U.S. growth numbers.

It is advisable to be cautions and closely monitor the beginning of this week, with Tuesday’s manufacturing data serving as a crucial factor for the early movement of the EUR/USD. If the currency pair manages to hold above the levels of 1.10400 to 1.10500 early in the week and continues to flirt with higher values into Thursday and Friday, it could set the stage for an eventful trading session when the U.S. jobs numbers are released and analyzed.

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Although the EUR/USD has displayed signs of life and bullish activity since early June, last week’s results tempered some of the optimistic expectations. Technical traders should pay attention to U.S. data throughout the week as they could provide short-term volatility indicators depending on the outcomes. Notably, U.S. inflation statistics will likely be a key factor to watch on Friday.

Weekly Forex Forecast - EURUSD, EURJPY, OIL - 31 July to 4 August 2023

If the Euro/Dollar pair experiences a strong surge and breaks above the level of 1.1475, the possibility of a decline will be invalidated. In such a scenario, it is reasonable to anticipate the pair to sustain its upward trajectory, with a potential target around the level of 1.1935.

Weekly Forex Forecast EURJPY

Last week, the EUR/JPY experienced a significant decline, reaching as low as 151.39. However, it staged a strong recovery just before the 38.2% retracement level of the move from 139.05 to 157.99, located at 150.77. This development suggests that the price actions seen from 157.99 are likely part of a correction to the overall uptrend starting from 139.05.

As of now, the initial bias for this week is neutral. If the pair manages to hold below the level of 156.00, it would signal a continuation a downward trend towards the projection level at 151.00 and then 148.

The overall outlook remains bullish as long as the support level at 150.77 holds, even in the event of another dip in prices.

Alternatively, if the pair manages to break of 157.99, it will resume larger up trend to 162.82 projection level next.

Weekly Forex Forecast USOIL

By the end of the trading week, oil settled near the level of 83.80 dollars per barrel. The commodity is currently exhibiting an overall uptrend, and there are indications of the formation of a “Triangle” pattern. However, the moving averages suggest a bearish trend.

Prices are once again testing the area between the signal lines, indicating selling pressure from raw material sellers and a possibility of further decline from the current levels. Traders and investors should closely monitor these price dynamics to gauge the market’s direction in the coming days.

US Oil is currently attempting to enter the resistance level near the level of 83.43. Where should we expect a potential rejection. An additional signal in favor of decline oil prices will be a test of the trend line on the relative strength index (RSI). Oil is forecast to move in downward towards the support area at 66.00.

On the other hand, if the market manages to break above the mentioned level (around 83.43 dollars per barrel), it could potentially lead to a significant pickup in momentum. This move may drive the price of oil to test the $93.50 level.

During this uptrend, any short-term pullbacks could be seen as buying opportunities, as it appears that the market is aiming to reach the $93 level. Traders should keep a close eye on these developments and consider the potential for further upward movement in oil prices.