In this weekly Forex forecast, I’m going to show you exactly how I’m trading EURUSD, GBPUSD, USDJPY, NZDUSD, and XAUUSD through September 11, 2020.
Watch the video below, and be sure to scroll down to see the charts and key levels for the week ahead.
The EURUSD continues to grind higher despite last week’s pullback.
However, the way the euro is pushing higher hints at the potential for some weakness over the coming days.
There is an upward sloping flag here that suggests exhaustion from buyers.
If it plays out, the EURUSD could revisit 1.1700 and perhaps even 1.1600.
The latter is the top of that multi-year wedge pattern that I’ve discussed for the last few months.
In the short-term, 1.1930 remains resistance with support coming in at 1.1700.
GBPUSD is in a similar situation to that of the EURUSD.
The pair is still grinding higher, and Friday’s session managed to hold above the 1.3260 level I pointed out last week.
However, the bullish momentum is waning.
If 1.3260 gives out on a daily closing basis, we could see GBPUSD pullback toward the 1.2980 region.
Just keep in mind that any shorts here are technically countertrend.
On the flip side, a push higher this week could target the 1.3480 resistance level.
The USDJPY structure has remained the same for weeks.
As long as the pair stays below 106.40 or thereabouts, there’s a decent chance of a run toward 101.00.
But as I mentioned in the video above, the idea that pairs like EURUSD, GBPUSD, etc. look like they want to move lower casts some doubt over USDJPY.
While the USDJPY isn’t exactly inversely correlated with these pairs, any dollar strength wouldn’t support a bearish USDJPY narrative.
The indecision across these pairs has left me on the sideline to start the week.
Key support for USDJPY comes in at 101.00 with resistance between 106.00 and 106.40.
NZDUSD is holding above key support at 0.6700 as of Friday’s close.
However, as I point out in the video above, the price action over the last few weeks has carved what appears to be a rising wedge pattern.
That could suggest weakness over the coming days and weeks.
It’s going to take a daily close below 0.6700 to trigger a move lower in the short-term.
Key resistance for the week ahead comes in at 0.6940.
Gold (XAUUSD) continues to consolidate above 1900 support.
That’s the metal’s previous all-time high.
At the same time, XAUUSD has struggled to carve a higher high in the short-term.
Buyers need to break the series of lower highs since 2075 in order to send gold higher.
Until then, expect this consolidation to continue.