In this weekly Forex forecast, I’m going to show you exactly how I’m trading EURUSD, GBPUSD, AUDUSD, NZDCAD, and XAUUSD through January 3, 2019.
Watch the video below, and be sure to scroll down for more commentary and annotated charts.
The EURUSD is set to start this week at a significant resistance area.
I’ve discussed the 1.1170 region several times in recent weeks, along with the descending channel top near 1.1200.
As I wrote on Friday, it’s going to take a daily close above 1.1200 this week to extend last week’s rally.
Such a break would expose 1.1300 and perhaps even the ascending channel top I mentioned in today’s forecast video.
Key support for the week ahead comes in at 1.1070.
The GBPUSD recovered last week following Tuesday’s close below 1.2980.
That’s the former range top that gave way to the pair’s next leg higher on December 3rd.
That means buyers may try to defend any retest of 1.2980 as support.
However, key resistance isn’t far away at 1.3160.
I think the future direction for GBPUSD will come down to what occurs at 1.3160/70 this week.
Bearish price action such as a pin bar from this area could turn the pair lower, perhaps back toward 1.2980.
Alternatively, a daily close above 1.3160/70 would expose 1.3340.
The AUDUSD continued its breakout higher last week.
I wrote about the potential for a break higher on December 4th.
Our first target was 0.6930, which was reached on the 13th.
That 0.6930 level is now key support for the AUDUSD.
As for key resistance, I think 0.7015 could attract sellers given the multiple weekly lows here between October 2018 and April of this year.
The NZDCAD continued higher last week following the November 19 breakout.
I wrote about the idea of a higher NZDCAD on November 18th.
Our first target was 0.8640, which was reached on December 2nd.
Going forward, I’d like to see NZDCAD stay above 0.8730/40 support on a daily closing basis.
Bullish price action from this region could signal the next leg higher, perhaps into the next key resistance at 0.8890.
Alternatively, a daily close below 0.8730 would signal weakness and also re-expose 0.8600.
XAUUSD (gold) has played out nicely for us.
The bullish idea required a daily close above the confluence of resistance at 1480, which materialized on December 23rd.
Our first target was 1515, which was fulfilled on Friday.
I do think the XAUUSD could be due for a pullback this week, or at least some consolidation.
That could occur just below 1515 or gold could pull back into the 1505 or even 1490 regions.
We’ll see what happens, but I wouldn’t be surprised to see some profit-taking around 1515 at the start of this week.