(Video) Weekly Forex Forecast for EURUSD, GBPUSD, USDJPY, EURAUD, XAUUSD (December 21 – 25, 2020)

by Justin Bennett  · 

December 19, 2020

by Justin Bennett  · 

December 19, 2020

by Justin Bennett  · 

December 19, 2020

In this weekly Forex forecast, I’m going to show you exactly how I’m trading EURUSD, GBPUSD, USDJPY, EURAUD, and XAUUSD through December 25, 2020.

Watch the video below, and be sure to scroll down to see the charts and key levels for the week ahead.

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EURUSD Technicals

The EURUSD has worked out beautifully since closing above 1.20 on December 1st.

I discussed that breakout before it occurred several times on this site.

I also announced my November 27th long entry on the Daily Price Action membership site.

I’ve since added to that position twice, and I’m interested in adding to it again this coming week.

As I mentioned on December 18th, key support for the EURUSD is between 1.2170 and 1.2200, which was Wednesday’s high.

Resistance is near 1.2330 but will depend on how the euro reacts to it this week.

My target remains 1.2500, which has been the case since October.

Disclosure: I hold a EURUSD long position.

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EURUSD uptrend and key levels on the daily chart
EURUSD daily time frame

GBPUSD Technicals

The GBPUSD bullish scenario that I’ve mentioned recently is alive and well.

We’ve reviewed the bullish potential several times on this site.

However, GBPUSD needs to close a month above falling wedge resistance near 1.3380 to confirm the breakout.

GBPUSD monthly falling wedge pattern
GBPUSD monthly time frame

Until then, buyers could struggle a bit.

On Friday, we saw some of that when GBPUSD bulls failed to keep the pair above 1.3480 into the close.

I still think the pound can rally in 2021, but buyers have work to do.

Lastly, GBPUSD doesn’t have the cleanest price action right now.

Others like EURUSD, AUDUSD, NZDUSD, and USDJPY are more favorable, in my opinion.

GBPUSD potential bottoming pattern on the weekly chart
GBPUSD weekly time frame

USDJPY Technicals

The USDJPY just closed the week below an eight-year trend line.

mentioned this level on December 9th, where I stated that a weekly close below 103.60 would open the door to 101.00.

That’s the location of the trend line from late 2012.

USDJPY breakdown on the monthly chart
USDJPY monthly time frame

We also looked at how USDJPY reacted to this level on December 15th.

If you’re a lifetime member, you know the December 14th candle was not a bullish pin bar for buying.

In fact, I told DPA members that I was only interested in shorting USDJPY.

There were three reasons why the December 14th candle wasn’t a buy signal.

First, USDJPY has been carving lower highs since February.

Even the massive 1,050 pip rally in March failed to carve a higher high.

As long as those lower highs persist, sellers are in control.

Second, the way USDJPY was “weighing” on the 103.60 area signaled that a breakdown was imminent.

I sometimes call this “heavy price action”.

It can be beneficial in determining whether a market is about to break lower or not.

The third reason why USDJPY hasn’t been a buy is that the pair has been sideways since November.

Any bullish candle like the December 14th pin bar is insignificant without momentum.

USDJPY broke 103.60 on Wednesday and retested the area as new resistance on Friday.

As long as the pair stays below that area this week, I like the idea of looking for shorts.

The move lower is likely to be full of retracements, but I continue to like USDJPY toward 101.00, as I have for months.

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USDJPY new resistance area on the daily time frame
USDJPY daily time frame

EURAUD Technicals

I haven’t discussed the EURAUD for some time, mostly because the pair has been indecisive all year.

However, that appears to be changing.

Two weeks ago, EURAUD sellers secured a weekly close below a multi-year trend line.

That level could be the neckline of a massive head and shoulders reversal.

As long as the EURAUD stays below the 1.6150 resistance area on a weekly closing basis, I like the pair lower toward 1.5700.

If this is, in fact, a bearish reversal pattern, the EURAUD could lose significant ground in 2021.

EURAUD head and shoulders bearish reversal on the weekly time frame
EURAUD weekly time frame

XAUUSD Technicals

We nailed the recent XAUUSD (gold) bottom near $1,750.

If you saw the November 28th forecast video, you know what I’m referring to.

Following that bounce from channel support, XAUUSD closed above $1,850 on December 7th.

However, XAUUSD failed to hold above the level in the following days.

So why should $1,850 serve as support now?

As I mention in today’s video above, gold bulls managed a weekly close above $1,850 last week, something they failed to do previously.

That weekly close above $1,850 should trigger a retest of the $1,900 resistance area this week.

A daily close above $1,910 or so should confirm the break from the bull flag below and send XAUUSD much higher in 2021.

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XAUUSD (gold) weekly time frame

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      1. Hi, Bennett ,no offense, I have a lot of respect for you, but I have a question, if you can make money by forex, why do you need to earn membership fees? I hope you can answer my questions, thank you and have a happy day!

        1. Justin provides same analysis to paying members as the general public and actually kicks members out of the membership group for challenging him on this, so there is the answer to your question. All about “money” and not trading for him. He has NEVER shown any of the actual trades he personally took when I was a member.

          1. Toni,

            Sorry to hear you feel that way.

            I don’t see that you were ever a member, at least not under the email address you used to post this comment.

            Also, I have never kicked someone out of the community for challenging me on such a thing.

            Members get a lot more than what’s here on the free site, including 5-10 videos from me every week, direct (private message) access to me, and they can also see exactly what I’m trading and invested in at any given time.

            I told DPA members about my crypto buys six weeks earlier than anything on the free site. That resulted in members buying Bitcoin at $6,800 instead of $8,800. A big difference considering it’s now $23,000.

            Members also got early access to my investment in the junior gold miners earlier this year, a trade that doubled their money in a few months.

            Those are just two examples. I could share many more from this year alone.

            I also announce my entries on the membership site. I certainly did recently for my EURUSD long and GBPNZD short, two positions that are worth a combined +870 pips right now.

            Members know this because they can see my trades and investments.

            Please let me know if you’d like me to explain anything else.


        2. Jarvis,

          It costs money to join because this website costs thousands of dollars every month to run.

          I’m also here working on it and helping members seven days a week, including six hours every Saturday. My time isn’t free.

          1. Thank you for your reply. Yes, I understand what you are saying, I am not saying that the fees are unreasonable, what I am saying is that why do you want to teach others to make money, wouldn’t it make more sense to make money yourself? Because according to what I know, the less people know about the trading strategy of the investment market, it will be better!

          2. I trade and teach because I enjoy both. Simple as that.

            I could teach a million people exactly how I trade, and the vast majority of them wouldn’t trade exactly as I do. Everyone is different and will adapt to my teachings in different ways, which I expect and encourage.

            Teaching thousands of retail traders to use price action won’t detract from its effectiveness. The FX market is MUCH bigger than that.

          3. okay, I see. Thank you , by the way ,I have learned a lot from your article, I hope you can forgive my rudeness.

  1. Hi
    As the Covit-19 has mutated in UK, several countries have stopped all airflights to/from UK. So I am very excited for the
    London open tomorrow morning.

  2. Again,got a question,it was a question,about pound,you said it close below 1.3480, other brokers showing 1.3520 so why? And where is a real number?thank you..also I learn a lot in those 2 years from your website,enjoy your analizes,thanks

  3. Thanks a million sir Ben, you have brought back life in my trading interest, how do I join the price action membership. Let me have the break down and save towards 2021.Thank for your consistency.

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