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In this weekly Forex forecast, I’m going to show you exactly how I’m trading EURUSD, GBPUSD, NZDUSD, EURCAD, and XAUUSD through July 17, 2020.
Watch the video below, and be sure to scroll down to see the charts and key levels for the week ahead.
The EURUSD broke out of a descending channel resistance.
However, so far, buyers have been unsuccessful in pushing the price above the 1.1350 resistance level.
So, although the euro is holding above the 1.1230 support area, momentum is lacking.
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As I’ve stated recently, it’s going to take a daily close above 1.1350 to confirm the break higher.
Such a breakout would expose 1.1420 and perhaps the 1.1500 handle.
Alternatively, a close below the 1.1230 area would signal weakness and expose the recent low at 1.1170.
GBPUSD encountered sellers last week just below the 1.2670/80 resistance area.
I wrote about this trend line last week.
As of now, GBPUSD bulls need to secure a daily close above 1.2670 to send the pair higher toward the 1.2800 area.
Key support for the week comes in at 1.2530.
That’s likely a must-hold level. A daily close below it would signal weakness and expose the bottom of the ascending channel near 1.2360.
NZDUSD closed above a significant level last week.
I wrote about 0.6550 in last week’s forecast.
I’ve also talked about how June’s close back inside a twenty-year wedge pattern confirmed the recent false break below support.
As long as buyers keep NZDUSD above 0.6550 on a daily closing basis, I have to respect the potential for higher prices.
That said, 0.6600 stands in the way, as does 0.6630/40.
But I still like the idea of a push into 0.6700/50 as long as the 0.6550 support region holds over the coming days.
The EURCAD chart is messy.
There’s no other way to say it.
However, trends usually develop following periods of consolidation.
Furthermore, we can see that recently, EURCAD has carved a wedge pattern from all of the back and forth price action.
As I mentioned in the video above, a close below wedge support near 1.5270 would expose 1.5000.
Alternatively, a close above the 1.5380 area would target 1.5530 and perhaps the 1.5700 resistance area.
XAUUSD (gold) had a big week.
I’ve liked the metal higher for months now, and I’ve stated in the past that a close above 1800 could pave the way for a run at all-time highs near 1900.
XAUUSD managed a close above 1800 last Wednesday.
As long as it holds as support on a daily basis, I like the idea of a move higher, perhaps to test all-time highs at 1900 or just above.
On the other hand, a daily close below 1800 would signal short-term weakness and may even expose 1750 support.
That said, I’ve liked the idea of buying dips or bullish breakouts on XAUUSD since April, and that sentiment hasn’t changed.