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In this weekly Forex forecast, I’m going to show you exactly how I’m trading EURUSD, GBPUSD, AUDUSD, EURAUD, and XAUUSD through January 8, 2021.
Watch the video below, and be sure to scroll down to see the charts and key levels for the week ahead.
EURUSD pulled back at the end of last week following a retest of 1.2300.
I’ve had this 1.2300 area on my chart for several weeks.
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However, despite some selling pressure going into the New Year’s holiday, the EURUSD still looks bullish.
The uptrend is intact, and the pair is holding above 1.2150.
And even if 1.2150 were to break, I would still consider the euro to be bullish while above 1.20 on a daily closing basis.
My target for EURUSD remains 1.25, which I first mentioned in October.
Disclosure: I hold a EURUSD long position.
GBPUSD is holding above 1.3480 on a weekly closing basis.
I’d discussed the significance of this level at length in recent weeks.
As I mentioned a couple of weeks ago, GBPUSD bulls needed to secure a weekly close above 1.3480 to confirm the breakout.
They did that two weeks ago, and the pair retested 1.3480 as new support last week.
However, don’t forget about the 1.3680 region.
The area between 1.3660 and 1.3720 could attract sellers on the way up.
Get through that, and we could see GBPUSD reach 1.4350 in the coming weeks and months.
Immediate support, on the other hand, comes in near 1.3580.
I’ve liked AUDUSD higher since early November.
I also talked about how shorts were playing with fire in December.
With AUDUSD now testing the 0.7740 area, we could see some weakness develop, but dips are for buying, in my opinion.
Key support for the week ahead comes in at 0.7620.
It will take a weekly close above 0.7740 to extend the rally and expose the 0.8100 area.
I first mentioned this EURAUD bearish reversal on December 19th.
The pair had just closed a week below the July 2019 trend line.
That level could be the neckline of a massive head and shoulders pattern.
If so, expect EURAUD to head toward 1.5700, 1.5200, and 1.4600 in the coming weeks.
However, it won’t happen in a straight line.
Sellers will likely defend any rotations to 1.6000.
Gold (XAUUSD) looks ready to break out any day now.
A daily close above the $1,900 resistance area would confirm the breakout and open the door to higher prices.
It would also help confirm the $2,380 measured objective I wrote about on December 7th.
XAUUSD looks set to move much higher in 2021, and it starts with a break above $1,900.
Key support for the week ahead remains $1,850.