The forex market is finally picking up momentum, creating plenty of opportunities as we head into March.
Watch today’s Weekly Forex Forecast to see how I’m trading the DXY, EURUSD, GBPUSD, USDJPY, and AUDUSD next week!
US Dollar Index (DXY) Forecast
The DXY may have reclaimed a key area on Thursday.
For the past week, I’ve discussed the potential for a US dollar short squeeze, given the tight consolidation since February 21st.
The price action pointed to a falling wedge, which triggered Thursday’s rally.
The DXY closed Thursday’s session above 107.10/20, flipping the area from resistance to support.
Friday marks the last trading day of February, making price action harder to read, as the final 24-48 hours of the month can often be erratic.
Still, if DXY bulls can hold 107.20 today, it could signal a significant bullish reclaim heading into March.
That would open the door to the 108.50 yearly open and potentially 109.50.
On the other hand, a close below 107.00 would start to look more bearish for the US dollar.
EURUSD Forecast
EURUSD broke down on Thursday as dollar shorts got squeezed, taking out the February trend line support.
I entered short at 1.0483, as shared with VIP members in real time.
On Friday, I booked half of that short at 1.0383, given that 1.0380 is the EURUSD mid-range.
It’s no surprise to see the euro bouncing today, considering the amount of volume traded at 1.0380.
However, if the DXY holds above 107.00, EURUSD could test its 1.0200 range lows in early March.
For that to happen, euro bears need a daily close below 1.0380 support.
As for resistance next week, traders should keep an eye on the recent lows at 1.0420.
GBPUSD Forecast
GBPUSD broke down on Thursday, closing below a key daily pivot at 1.2626 and a short-term ascending channel near 1.2640.
That opens the door to the confluence of support at 1.2500 as we move into March.
The GBPUSD yearly open sits at 1.2515, making a retest in the 1.2500 region a significant moment for the pound.
Given the importance of 1.2500, buyers are likely to defend it if tested in the coming sessions.
As a result, expect some ranging between 1.2500 and 1.2600 in early March.
However, if GBPUSD breaks below 1.2500 on the high time frames, it could signal a deeper pullback toward 1.2300 and lower.
USDJPY Forecast
USDJPY is bouncing from its 149.00 support last week, but bulls have work to do in March.
The pair broke below its November channel on February 20th, turning the 151.80-152.00 region into new resistance.
Given my trading style, I’ll only be interested in USDJPY if bulls can reclaim this area on the daily time frame.
I primarily trade fakeouts and reclaims on the high time frames, so a sustained break above 152.00 is needed to get my attention.
Until then, I’ll focus on the more obvious setups.
AUDUSD Forecast
AUDUSD was an incredible trade last week, and one I’m still in going into March.
I’ve taken profit twice on last week’s short from 0.6370, another profitable trade I shared with VIP Discord members in real time.
Although we could get a bounce from the 0.6200 point of control, my next target for AUDUSD is the 0.6130 range lows.
That’s especially the case given what we saw from the US dollar and stocks last week.
Another support to keep an eye on is the AUDUSD yearly open at 0.6186.
Buyers may look to defend that region next week, with resistance coming in near 0.6255.
There’s also a broadening wedge since December that points to a potential retest of 0.6000 in the coming weeks, which is the 2008 great financial crisis low.
