In this weekly Forex forecast, I’m going to show you exactly how I’m trading EURUSD, GBPUSD, NZDUSD, GBPNZD, and XAUUSD through September 18, 2020.
Watch the video below, and be sure to scroll down to see the charts and key levels for the week ahead.
The EURUSD hasn’t changed much lately.
The pair is still consolidating between 1.1700 support and the 1.1960 resistance area.
However, this is all the more reason to stay cautiously bullish, in my opinion.
A sideways market within an uptrend like this usually breaks higher.
Additionally, the EURUSD is holding above the multi-year wedge pattern that I’ve discussed for several months.
As long as 1.1500 is intact as support, I like the idea of a higher euro.
That doesn’t mean there won’t be pullbacks along the way, but it’s difficult for me to get bearish, given what I mentioned above.
The GBPUSD has worked out nicely for those who got short following the September 7th close below trend line support.
I mentioned the potential for this breakdown two weekends ago.
You can also see where the pound closed below the March trend line last week.
However, it’s unclear as of this writing whether or not this is a false break.
Buyers would need to close the pair back above the 1.2980 region to confirm the false move and re-expose 1.3260.
For now, 1.2930 is resistance, with a move lower taking on the 1.2640 area.
I mentioned this rising wedge on NZDUSD last week.
You can see how the pair has held above support since then.
A close below 0.6640 would suggest weakness and expose the next key support at 0.6500.
However, a word of warning to anyone getting bearish.
As I pointed out in the video above, the NZDUSD could be carving a larger inverse head and shoulders pattern.
If so, any pullbacks could be short-lived.
I wrote about this GBPNZD ascending channel on July 22nd.
The pair was testing channel support, and I mentioned that a breakdown looked imminent.
But the pair bounced from channel support instead.
That isn’t too surprising given the significance of this channel.
If GBPNZD sellers can clear the 1.9100 region on a daily, and especially weekly closing basis, it would open the door to 1.8270.
Just keep in mind that 1.9100 is serving as support as of this writing.
Gold (XAUUSD) has been consolidating since early August.
The pullback from 2075 took XAUUSD back to 1900, which was the metal’s previous all-time high.
However, the price action since then has continued to look constructive.
The uptrend is also still very much intact, which is why I’ve stayed bullish on the XAUUSD throughout this pullback.
A close above 1950 would open the door to 2015 with a close above that taking gold back to its recent 2075 high.