(Video) Weekly Forex Forecast for EURUSD, GBPUSD, USDJPY, EURAUD, XAUUSD (December 28 – January 1, 2021)

by Justin Bennett  · 

December 26, 2020

by Justin Bennett  · 

December 26, 2020

by Justin Bennett  · 

December 26, 2020

In this weekly Forex forecast, I’m going to show you exactly how I’m trading EURUSD, GBPUSD, USDJPY, EURAUD, and XAUUSD through January 1, 2021.

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 pulled back last week but caught a bid at 1.2140 before the weekend.

That 1.2140 area is key support to start the new week.

As long as that area holds on a daily closing basis, the 1.2330 resistance area is exposed.

That said, don’t dismiss the potential for a pullback to 1.20.

The EURUSD has yet to test that area as new support.

It doesn’t mean it will happen, but it is one scenario I’m keeping an eye on.

I remain long from the 1.1940 area, as announced in the member’s area.

My target for the EURUSD is still 1.2500, but that doesn’t mean the pair can’t trade sideways or even lower before 1.25 is realized.

Disclosure: I hold a EURUSD long position.

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EURUSD support and resistance on the daily chart
EURUSD daily time frame

GBPUSD Technicals

GBPUSD continues to look relatively bullish across the board.

I’ve discussed this falling wedge pattern several times.

GBPUSD falling wedge pattern
GBPUSD monthly time frame

The multi-year structure above suggests a higher GBPUSD in 2021, but only if buyers can clear 1.3340 this month.

We also recently looked at the weekly chart.

Last weekend, I mentioned how GBPUSD buyers needed to secure a weekly close above 1.3480 to open the door to 1.4350.

However, the 1.3680 is also likely to attract sellers on the way up.

We’ll see if GBPUSD can keep its head above 1.3480 after closing last week above the level.

If so, the pound is on its way to 1.3680, followed by 1.4350.

Alternatively, a weekly close back below 1.3480 would negate the bullish outlook.

GBPUSD bullish reversal pattern
GBPUSD weekly time frame

USDJPY Technicals

USDJPY is in the process of breaking down from an uptrend that began in 2012.

I first mentioned the potential for a bearish move on December 9th.

USDJPY monthly trend line
USDJPY monthly time frame

We were waiting for a weekly close below the 103.60 region before considering a short.

As you can see from the weekly chart below, 103.60/70 is the location of that trend line that extends from the late 2012 lows.

I also pointed out the recent sell signal on December 22nd.

So far, USDJPY is holding below that 103.70 region.

As long as that continues, I like USDJPY lower.

However, the pair needs to close below the 103.00 area to open the door to the multi-year key level near 101.00.

Only a weekly close above 103.70 would negate the idea.

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USDJPY new resistance on the weekly chart
USDJPY weekly time frame

EURAUD Technicals

I mentioned the potential EURAUD head and shoulders in last weekend’s forecast.

We also reviewed the setup last week on the blog.

Since that time, the pair has tested the 1.6150 region as new resistance and is holding well below that region.

As long as 1.6150 holds as new resistance, I like EURAUD lower toward 1.5700.

But as I mentioned last week, if this head and shoulders plays out, we can expect a much lower EURAUD in 2021.

Only a weekly close above 1.6180 would negate the bearish outlook.

EURAUD head and shoulders on the weekly chart
EURAUD weekly time frame

XAUUSD Technicals

Gold (XAUUSD) looks ready to punch higher any day now.

The bull flag pattern below is getting stretched, and the pair recently bounced aggressively from the $1,750 support area.

I discussed the potential for that bounce in the November 28th forecast.

However, if you’ve seen my recent XAUUSD posts, including last week’s, you know buyers have to clear $1,900 on a daily closing basis.

A close above $1,900 would confirm the breakout from this bull flag.

It would also open the door to $1,930 and perhaps $2,015 and $2,075.

I continue to like XAUUSD higher in 2021, possibly to the bull flag pattern’s measured objective at $2,380.

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XAUUSD bull flag on the daily chart
XAUUSD daily time frame

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  1. Hi Justine
    I like your setups its really helpful and educational, will be joining your fulltime membership soon, hope it will be more beneficial.
    Thanks keep it up

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