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In this weekly Forex forecast, I’m going to show you exactly how I’m trading EURUSD, GBPUSD, USDJPY, USDCAD, and XAUUSD through May 29, 2020.
Watch the video below, and be sure to scroll down for more commentary and annotated charts.
EURUSD lost its upward momentum at the end of last week following a close above wedge resistance near 1.0940.
I wrote about the potential for this bull trap on Thursday.
The way the pair retested former wedge resistance as new support immediately was a red flag.
Furthermore, there was a 4-hour upward sloping flag that hinted at weakness.
I shared this pattern with Daily Price Action members on Thursday, and it played out perfectly before the weekend.
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For the week ahead, 1.0890 is support with a close below that taking on the bottom of the wedge pattern near 1.0820.
The 1.0930 area should attract sellers on any retest.
The GBPUSD carved a false break of its own last week.
After closing back above 1.2200 on May 19th, buyers failed to hold prices above it into the weekend.
With Friday’s sub 1.2200 close, that area will likely continue to serve as resistance into next week.
Key support comes in at 1.2000 with a close below that taking on 1.1780.
USDJPY continues to consolidate below 107.80 resistance.
I wrote about the falling wedge below on May 11th.
I was buying the pair before that in anticipating of a break higher, which materialized on May 11th.
I shared those entries within the membership site.
However, I’ve been reluctant to add to that position given the sideways movement below 107.80.
I continue to look USDJPY higher toward 109.30, but it’s going to take a daily close above 107.80 to attract a fresh round of buyers.
Key support for the week ahead comes in at 106.90.
USDCAD continued its consolidation last week following the aggressive March rally.
As you can see, 1.3850 is still serving as key support within this descending channel.
I bought USDCAD last week at 1.3904 based on the way the pair was holding above 1.3850, which I announced in the member forums.
I’m interested in adding to that position, but not until USDCAD gets above channel resistance on a daily closing basis.
Above 1.4080 resistance, we have 1.4330 and 1.4660.
I wrote about XAUUSD (gold) on Friday.
We looked at a confluence of support near 1700, which is the intersection of former wedge resistance and descending channel support.
As long as 1700 holds on a daily closing basis, I like XAUUSD higher.
Just keep in mind that buyers need to clear the 1740 area to expose 1750 and perhaps 1800.
Alternatively, a close below 1700 would signal weakness and could even expose 1640.