In this weekly Forex forecast, I’m going to show you exactly how I’m trading EURUSD, GBPUSD, XAUUSD, ETHUSD, and VETUSD through August 14, 2020.
Watch the video below, and be sure to scroll down to see the charts and key levels for the week ahead.
The EURUSD spent last week consolidating below 1.1900 resistance.
That’s the area that buyers need to clear in order to extend the recent rally.
More specifically, euro bulls need to secure a daily close above 1.1900 to expose the 1.2090 region.
As mentioned in the video above, 1.1780 is support in the near-term, but 1.1700 and 1.1600 are more significant, in my opinion.
In fact, 1.1600 is a must-hold level for buyers.
That’s near the top of the multi-year wedge pattern.
All in all, I would say EURUSD needs some time to cool off following its 650 pip rally over the last few weeks.
But as long as 1.1600 is intact as support, sellers need to be careful as the short-term trend remains bullish.
GBPUSD spent last week consolidating below the 1.3160 resistance area.
I wrote about the same price in last week’s forecast.
It’s technically a confluence of resistance as it’s the intersection of a key horizontal level and a trend line from April 2018.
However, this isn’t a selling opportunity, at least not for me.
While 1.3160 is a significant hurdle for buyers, the short-term trend for GBPUSD is bullish.
Furthermore, there hasn’t been much selling pressure below 1.3160.
Key support for the week ahead comes in at 1.2970 followed by 1.2800.
Alternatively, a close above 1.3160 would open the door to the 1.3500 region.
Gold (XAUUSD) continues to be a “buy the dip” kind of market.
At least that has been my approach since April 1st.
That’s when I started to scale into several junior mining companies, which I also shared with DPA members at the time.
Those investments have performed incredibly well so far, bringing in over 140%.
But this gold rally is far from over.
As I wrote a few weeks ago, I expect XAUUSD to continue higher over the next five years or so.
Although it seems far fetched now, gold at $5,000 or even $10,000 within the current ten-year bull market isn’t out of the question.
In fact, taking the average gain of the last two cyclical bull markets since the 1970s puts gold at $8,000 by 2025.
However, in the near-term, some consolidation or even a pullback for XAUUSD would be healthy, in my opinion.
As for key support, the 2000 area will likely attract a few buyers, but 1900 to 1920 is the must-hold level for buyers.
Ethereum (ETHUSD) looks like it’s ready for the next leg higher.
I started writing about ETH on June 4th.
At the time, the coin was still trading in the $230 range.
Fast forward to today, and Ethereum is up 70% and is trading just below $400.
However, as I mentioned last week, Ethereum seems to have its eye on the $800 area followed by all-time highs near $1,400.
And it isn’t likely to stop there either.
In the near-term, a daily close above the $400 area would expose $500 followed by the $800 region, which was a factor in late 2017 and early 2018.
Disclaimer: I hold a position in Ethereum as part of a multi-year investment portfolio.
VeChain (VETUSD) has enjoyed a heck of a run lately.
I first wrote about VeChain on June 26th.
I also told DPA members I was buying the cryptocurrency on June 11th when it was still trading between 0.008 and 0.009.
That investment is now up 150%.
But just like Ethereum, I don’t think VeChain is done yet, not by a long shot.
As for VET, Saturday’s close above 0.02 was significant.
And as long as that area holds as new support, the door is open to the 0.026 to 0.028 resistance area.
That’s VET’s all-time high.
There’s a very good chance this goes parabolic if 0.028 breaks over the coming weeks, which I think it will.
Disclaimer: I hold a position in VeChain as part of a multi-year investment portfolio.