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In this weekly Forex forecast, I’m going to show you exactly how I’m trading EURUSD, GBPUSD, AUDUSD, NZDUSD, and AUDJPY through December 13, 2019.
Watch the video below, and be sure to scroll down for more commentary and annotated charts.
The EURUSD did, in fact, push higher last week.
If you watched last weekend’s forecast video, you know I was watching for a bounce from the confluence of support at 1.0990.
The November 29 bullish engulfing candle was also somewhat appealing.
We got the bounce from the 1.0990 region, however, buyers failed to keep prices above the 1.1070 level after Thursday’s close above it.
Friday’s bearish engulfing range also hints at weakness for the upcoming week.
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Key resistance, for now, comes in at 1.1070 with support not far below around 1.1010/20.
The GBPUSD played out perfectly for us last week.
We’ve been waiting for a breakout from the sideways consolidation between 1.2770 support and 1.2980 resistance for several weeks.
I even wrote about the potential for another rally on December 3.
The GBPUSD was in the process of closing above that 1.2980 when I made that video post last week.
If you were quick enough to catch it, the breakout produced an effortless 170 pips of gains.
In fact, the GBPUSD reached the 1.3170 area I wrote about in last week’s post.
The AUDUSD is approaching a key inflection point.
I wrote about this resistance back on November 4 just before the pair rotated lower by 170 pips.
I also mentioned this latest rally and the impact the 0.6880 region could have on the pair last Wednesday.
For now, the future direction for AUDUSD hints on this resistance area.
A close above it would expose 0.6930 and perhaps 0.7030.
Alternatively, bearish price action such as a pin bar or engulfing candle would hint at weakness.
In that video, I explain how I came up with this ascending channel you see below.
Based on the upper portion of the pattern near 0.6560 and the 0.6580 horizontal level we’ve had our eye on, I do think this area is one to watch.
However, I’d be careful about getting too bearish the NZDUSD.
The inverse head and shoulders that I’ve been talking about for weeks is still intact as is the objective near 0.6660.
So while we could see a rotation lower this week, I do expect the NZDUSD to encounter buyers around 0.6490.
A close below that would expose the 0.6430/40 confluence of support.
I wrote about the AUDJDY a couple of weekends ago.
We’ve been keeping an eye on this potential rising wedge since then.
However, as you can see, the pair is still trading above this support level, which means trying to sell AUDJPY right now may not be ideal.
It’s going to take a daily close below the support level to confirm the breakdown and also expose lower levels.
One such level is 73.40 with a close below that targeting 71.80.