Get 40% Off
to Daily Price Action.
Ends January 31st!
In this weekly Forex forecast, I’m going to show you exactly how I’m trading EURUSD, GBPUSD, AUDUSD, GBPNZD, and XAUUSD through December 4, 2020.
Watch the video below, and be sure to scroll down to see the charts and key levels for the week ahead.
The EURUSD is close to breaking out of a four-month range.
The area between 1.1615 support and 1.1970 resistance has been a key factor since September.
Get FREE Access to Daily Price Action When You Open and Fund an Account With Blueberry Markets!
However, I’ve favored the euro higher for months.
The uptrend is intact, and the pair is holding above the 1.1450 area on the monthly chart. See the video above for the details.
As for the week ahead, EURUSD needs to secure a daily and weekly close above the area between 1.1970 and 1.2010.
That would expose 1.2150 and 1.2330.
My target for EURUSD remains 1.2500 as we head into next year.
Disclosure: I hold a EURUSD long position.
GBPUSD buyers are trying their best to close the pair above the 1.3340 resistance area.
They managed to do so between Tuesday and Thursday last week, but Friday’s close casts some doubt over the breakout.
As I mentioned in today’s video, the weekly chart failed to close above 1.3340.
That could trigger some weakness from the GBPUSD early next week.
That said, the higher time frame charts continue to look constructive.
But viewing the daily time frame below, I do expect some weakness early in the week followed by another bounce.
If GBPUSD continues to pressure the 1.3340 area, I do expect a bullish breakout into 2021.
A weekly close above 1.3340 would open the door to 1.3480 followed by 1.3650.
I mentioned the potential for a higher AUDUSD on November 23rd.
In the Daily Price Action member’s video, I said that the 4-hour triangle pointed to a break above 0.7340.
Sure enough, AUDUSD broke above that level on the 24th.
However, buyers still need to deal with the 0.7410 resistance area to expose the next key area around 0.7740.
Key support for the week ahead comes in at 0.7340.
I’ve been talking about a potential breakdown from GBPNZD since July.
I also mentioned it on November 12th.
The lower highs since August suggested that a break lower was imminent.
Last week’s close below the 1.90 support area confirmed the break.
Going forward, I’d expect to see sellers defend the area between 1.9000 and 1.9150.
As long as GBPNZD is below that region on a weekly closing basis, I favor lower prices toward the 1.8280 support region.
Gold (XAUUSD) hasn’t performed well of late.
And that’s an understatement.
Since carving a 2020 high at 2075, gold has declined over 12%.
While I still think XAUUSD will rally in 2021, it won’t do nearly as well as Bitcoin.
If 2020 is any guide, Bitcoin will outperform gold by a long shot!
So far this year, gold is up about 20%.
Meanwhile, Bitcoin is up a staggering 167% this year.
Bitcoin is also up 114% since I publicly mentioned my interest on May 5th.
I was buying BTC starting in early April, which I also discussed in the Daily Price Action member’s area.
So, while XAUUSD may offer some trading opportunities as we head into 2021, it isn’t the best choice to hedge against the money printers.
That title goes to Bitcoin.
As for the XAUUSD technicals, the pair is fast approaching the 1790 support level I’ve mentioned several times this year.
That’s a critical area that dates back to 2011 and 2012.
If gold can hold above the 1790 support area on a daily and weekly closing basis, I like the yellow metal higher.
Buyers would also need to close the pair back above 1850.
If, on the other hand, it closes below 1790, we could see an extended pullback toward 1680.