In this weekly Forex forecast, I’m going to show you exactly how I’m trading EURUSD, GBPUSD, USDJPY, AUDUSD, and XAUUSD through May 1, 2020.
Watch the video below, and be sure to scroll down for more commentary and annotated charts.
[thrive_custom_box title=”” style=”dark” type=”color” color=”#fef5c4″ border=”fadf98″]
Did You Like That Video?
Subscribe on YouTube to get notified when I post new videos every week!
[/thrive_custom_box]
EURUSD Forecast
The EURUSD edged lower last week but managed to close above the twenty-year trend line from the 2000 lows.
I’ve discussed this pattern several times in recent weeks.
One new addition to the chart above is the highlighted price action between 2005 and 2011.
I pointed this out in the member forums last week.
It isn’t the cleanest looking head and shoulders pattern, but it does pass the test.
What’s interesting is that the measured objective for that multi-year structure points to the 0.8000 area.
As you know from my recent posts, 0.8000 is only a couple of hundred pips below the euro’s all-time low at 0.8225.
Whether it’s a coincidence or not is unclear.
However, what I do know is that it’s going to take a monthly close below the twenty-year trend line to confirm the breakdown.
Key resistance for the week ahead comes in at 1.0820/30.
[thrive_custom_box title=”” style=”dark” type=”color” color=”#fef5c4″ border=”fadf98″]
Want Me To Help You Become A Better Forex Trader?
Get a Lifetime Membership Today and receive exclusive member-only content including one to two new videos every day. Save 40% in April!
[/thrive_custom_box]
GBPUSD Forecast
After several weeks of indecision, the GBPUSD is finally starting to look attractive.
It doesn’t date back as far as I’d like, but the potential for a head and shoulders reversal does exist.
I highlighted this pattern in the member forums last week as well.
If the GBPUSD can close below the neckline near 1.2280, it would open the door to 1.2200, 1.2000, and perhaps the measured objective near 1.1830.
Key resistance for the week ahead comes in at 1.2440/50.
USDJPY Forecast
If you saw last week’s forecast, you’ve seen the monthly chart below.
Some may see it as a long shot, but the fact is that markets move thousands of pips all the time.
Furthermore, nobody is saying that USDJPY will rally thousands of pips in a matter of days or weeks.
But just because it will take months or even years to play out doesn’t invalidate it.
Now, I’m using the monthly chart above to construct a long-term view of the USDJPY.
The direction that wedge breaks will likely determine the future path forward for the pair over the next several months or even years.
The more immediate path forward, on the other hand, comes down to the 4-hour chart below.
A close above the short-term trend line near 107.60 would signal strength and expose 109.30.
Alternatively, a close below 106.90 would indicate weakness and take the pair back to 105.30 or even 104.40.
[thrive_custom_box title=”” style=”dark” type=”color” color=”#fef5c4″ border=”fadf98″]
Get Access To The Same New York Close Forex Charts I Use.
DOWNLOAD the charting platform for free!
[/thrive_custom_box]
AUDUSD Forecast
The AUDUSD managed to climb higher last week after some initial weakness.
I wrote about the rising wedge here on April 20th.
However, one thing that should be concerning if you’re an AUDUSD bull is the potential hanging man that developed last week.
Will the hanging man reversal send AUDUSD lower this week?
As always, nobody knows where this or any market is going.
But if AUDUSD takes out last week’s lows near 0.6250, it would confirm the reversal and expose 0.6200 and perhaps 0.6000.
Alternatively, a close above 0.6450 would signal strength.
XAUUSD Forecast
XAUUSD (gold) played out perfectly for Daily Price Action members last week.
In that video, I discussed a short-term trend line from the March 9th high, which intersected with last week’s price action at 1659.
I talk about this in the video above.
The bullish rejection from 1659 carved a bullish pin bar.
The market then proceeded to test the 50% retracement of that April 21st bullish pin bar before rally to a high of 1738.
I discussed all of this in the member’s area last week as it was unfolding.
For the week ahead, it all comes down to whether buyers can hold XAUUSD above 1690 support.
If they can, there is an excellent chance that we see gold take out 1740/50 resistance for a move to 1800.
[thrive_custom_box title=”” style=”dark” type=”color” color=”#fef5c4″ border=”fadf98″]
Want Me To Help You Become A Better Forex Trader?
Get a Lifetime Membership Today and receive exclusive member-only content including one to two new videos every day. Save 40% in April!
[/thrive_custom_box]
