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In this weekly Forex forecast, I’m going to show you exactly how I’m trading EURUSD, GBPUSD, USDJPY, AUDUSD, and VETUSD through October 30, 2020.
Watch the video below, and be sure to scroll down to see the charts and key levels for the week ahead.
The EURUSD gained a decent amount last week after a slight pullback the week before.
If you saw Wednesday’s video, you know that I managed to get long here.
As I mentioned in that video, I liked the idea of the 1.1815 area becoming new support.
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That’s precisely what happened between Thursday and Friday.
However, I’m more interested in what happens this week near 1.1950/70.
That’s range resistance as well as what could be the top of a bull flag pattern.
We’ll have to wait and see how EURUSD reacts to that 1.1950 area to know for sure.
A daily close above that area could trigger the next leg higher for the euro.
Just keep in mind that the pair is range-bound as long as the 1.1950/70 region is intact as resistance.
GBPUSD continues to look unfavorable.
Although the uptrend is technically still intact, the last few weeks have been incredibly choppy.
Additionally, the 1.3000 area has become less influential following the price action in mid-October.
That said, I do like GBPUSD higher as long as the May trend line is intact.
Key resistance for the week ahead comes in at 1.3260.
USDJPY gave us a nice move last week.
I’ve been talking about the potential for a retest of 104.20 for the last couple of weeks, including last week’s forecast.
The pair didn’t quite make it to 104.20, but Wednesday’s low of 104.34 will do.
Given the lower highs since February, USDJPY looks set to break below 104.20.
If it does, 101.00 could be in the cards.
I mentioned this AUDUSD trend line on October 11th.
Sure enough, the pair failed to close above it and rotated lower to test 0.7030 support once more.
This has carved a wedge pattern that could be playable over the coming days.
Given the uptrend here, I’m inclined to look for buying opportunities.
But first, buyers need to clear the year-to-date trend line on a daily closing basis.
That would open the door to 0.7400.
Alternatively, a close below 0.7030 would suggest weakness and expose the 0.6830 area.
VeChain’s token VET closed above a critical area last week.
I’ve written about this pattern a couple of times in recent weeks, noting how VET needed to get above falling wedge resistance.
It did that last week.
However, as I mentioned in the video above, the volume following this breakout has been lacking.
That could be an indication of further consolidation or even that this breakout will fail.
But that said, no two breakouts are alike, and as long as former wedge resistance holds as support, this breakout is in play.
Just remember that this is an investment for me.
I’m not trading VET or any crypto for that matter.
BTC, ETH, and VET are all long term plays based on the new cyclical bull market that kicked off several months ago.