In this weekly Forex forecast, I’m going to show you exactly how I’m trading EURUSD, GBPUSD, NZDUSD, GBPNZD, and VETUSD through July 10, 2020.
Watch the video below, and be sure to scroll down for more commentary and annotated charts.
The EURUSD looks primed for a breakout.
I mentioned this descending channel in last week’s forecast video.
Given the rally in late-May and early June, this channel could very well be a bull flag that sends EURUSD higher.
However, as I wrote last week, the top of that channel near 1.1260/70 is going to play a critical role.
Euro bulls need to secure a daily close above that area to expose higher prices.
One such key resistance level is 1.1350, followed by 1.1420.
Keep an eye too on the twenty-year wedge pattern that I’ve discussed several times in recent months.
That structure will likely dictate the longer-term direction of the euro.
Watch the video above for all of the details.
GBPUSD bounced from the 1.2250 area last week.
If you saw last weekend’s forecast, you know that I was keeping an eye on the 1.2240 support region.
As of now, GBPUSD bulls need to secure a daily close above 1.2530 to expose higher levels.
One such level is the recent swing high at 1.2800.
Alternatively, a rotation lower followed by a close below the 1.2250 area would signal weakness.
I wrote about this NZDUSD false break on July 1st.
If you saw my earlier posts about NZDUSD, you know that I was waiting throughout the second half of June to see if this would lead to a false break.
June’s close back inside of this wedge pattern confirms that the March selloff was nothing but a false break below a multi-year support level.
And a false break to one side of a pattern often triggers an extended move in the opposite direction.
That could push NZDUSD higher in the coming days and weeks.
However, buyers first need to secure a close above 0.6550.
That’s the approximate location of the multi-year wedge resistance.
A close above that would open the door to 0.6700.
Key support for the week ahead comes in at 0.6380.
GBPNZD broke down from an ascending channel I wrote about on March 18th.
That breakout hit our target last week around 1.9000.
I also wrote about the 1.9400 resistance level on June 19th.
As you can see, that’s where GBPNZD sold off from between June 24th and 25th.
For the week ahead, I do expect buyers to defend the 1.9000 region.
However, as I wrote on June 19th, the long-term downtrend combined with the price action over the last few years hints at an eventual breakdown.
I first wrote about VeChain (VETUSD) on June 26th.
VeChain was and still is undervalued, in my opinion.
Given their first-class team, a long list of big-name partners, and a platform that’s in use today, the price should be much higher.
Apparently, the market was listening.
At its high on Sunday, VETUSD was up more than 90% since breaking out from the wedge pattern I wrote about on July 1st.
VeChain is also attempting to close this week above the 0.0106 area.
But despite being up massively this week, VeChain is still undervalued, in my opinion.
For comparison purposes, let’s look at Cardano (ADA).
VeChain is more than two years ahead of Cardano with its mainnet launch, yet Cardano’s market cap is four times greater than VeChain’s.
Why is that?
Is it because Cardano has a better management team or more/better partners?
VeChain’s management team is top-notch, and their list of partners, including those actually using their platform, exceeds that of Cardano.
But I think VeChain’s undervaluation against its peers is about to change.
The market is finally realizing the potential here, and that’s reflected in the 90%+ gain in the last five days.
The tweet below sums up why I’m bullish on VeChain over the next few years.
Why I’m invested in #VeChain…— Justin Bennett (@JustinBennettFX) July 1, 2020
– First-class management team
– Dozens of big-name partners
– Product in use (not a concept)
– Multi-industry use cases
– $500 million MC in a $50 trillion supply chain industry
– Fixed supply
Did I miss anything #VeFam?
DYOR. $VET #VET
As far as the technicals are concerned, a weekly close above 0.0106 would confirm the breakout above VET’s long-term range top.
That weekly close occurs in just a few hours on Sunday at 8 pm EST.
Such a close would open the door to 0.02, followed by 0.028.
Longer-term, I wouldn’t be at all surprised to see VeChain trading at 0.05 or even 0.10 later this year.
Disclaimer: I own Bitcoin, Ethereum, and VeChain. This post is for educational purposes only and is not financial advice.