In this weekly Forex forecast, I’m going to show you exactly how I’m trading EURUSD, GBPUSD, USDJPY, USDCHF, and CADJPY through November 1, 2019.
Watch the video below, and be sure to scroll down for more commentary and annotated charts.
The EURUSD pulled back last week after an impressive 300 pip rally.
I wrote about the potential for a short-term bottom on October 3 when the pair was trading at 1.0990.
We also reviewed the likelihood of a break higher just before it occurred on the 11th of October.
Notice how EURUSD retested 1.0990 as new support before taking off.
Last week’s pullback took out the 1.1100/10 support area, which means any retest this week could attract sellers.
However, Friday’s session ended just above 1.1070 support, which means it could continue to attract buyers this week.
It’s going to take a daily close below 1.1070 to expose 1.1020/30 and perhaps 1.0990.
I’m still interested in buying EURUSD, but not until I see an end to this consolidation followed by a buy signal from key support.
Like the euro, the GBPUSD consolidated last week after an incredibly aggressive 800 pip rally.
However, the pair is still holding above 1.2770 support on a daily closing basis.
I have to respect the potential for a move higher as long as 1.2770 is intact.
A daily close below 1.2770 would expose the next key support at 1.2570.
Alternatively, a push higher this week would likely encounter sellers near last week’s high of 1.2990.
The USDJPY has a decision to make this week.
We’ve been tracking this inverse head and shoulders since the pair bounced from the 106.80 support level in early October.
Buyers confirmed the reversal pattern on the 11th and retested it as new support the very next day.
However, USDJPY bulls have failed to close the pair above the 109.00 resistance level, at least so far.
We’ll see if that changes this week.
If so, we could see USDJPY move toward the next key resistance at 110.60.
Alternatively, a move below the recent consolidation lows around 108.20/30 would indicate weakness.
We looked at this USDCHF ascending channel breakdown on Friday.
In that post, I pointed out how the 0.9930 area could attract sellers.
I also mentioned in the members’ forums that 0.9930 could extend as high as 0.9950 based on the recent price action here.
Friday’s session did encounter sellers around 0.9950, but nothing to pique my interest for a short.
I will, however, be watching to see what occurs at 0.9930/50 this week.
Any bearish price action could signal a rotation lower into 0.9840 support.
Alternatively, a daily close above 0.9950 would indicate strength and could even expose the confluence of resistance at parity (1.0000).
The CADJPY has performed beautifully since breaking out on October 11.
I talked about this breakout and a possible retest of the 81.80 area on the 14th.
I was able to get long just above 81.80 and also shared this entry in the members-only video on the 14th.
So far, the CADJPY has respected both 81.80 and 82.50 that I mentioned a couple of weeks ago.
That said, we’re still waiting for a daily close above 83.20.
That’s what it’s going to take to see CADJPY trend even higher, perhaps to the next key resistance at 84.20.
Key support for the week ahead comes in at 82.50.
My objective remains 85.20/50, but buyers first need to clear 83.20 before the next leg higher can materialize.