In this weekly market forecast, I’m going to show you exactly how I’m trading EURUSD, GBPUSD, AUDUSD, BTCUSD, and ETHUSD through February 12, 2021.
Watch the video below, and be sure to scroll down to see the charts and key levels for the week ahead.
The EURUSD may have confirmed a false break last week.
I told Daily Price Action members recently that any close below the 1.2000 area isn’t something I would short.
EURUSD has been trending higher since early last year, which means any shorts are counter-trend.
I even said last week that a close below 1.2000 could very well turn out to be a false break.
That said, it may be a little too early to tell.
I’d like to see how the pair reacts to the 1.2000 region early this week before announcing this as a confirmed false break.
If the EURUSD stays above 1.2000 on Monday and Tuesday, it’s a clear sign that the pair wants to head back toward 1.2330, in my opinion.
Alternatively, a close below 1.2000 would keep the area intact as new resistance.
GBPUSD may have broken out on Friday.
I’ve said for a while now that the pound needs to get above 1.3700 on the weekly time frame to secure the break.
However, Friday’s close was marginally above 1.3700.
So, just like the EURUSD, I need to see more from the pair before I can officially call this a breakout.
I mentioned this descending channel (aka bull flag) on AUDUSD last weekend.
In that video, I said the area around 0.7580 should serve as support.
Sure enough, AUDUSD hit a low of 0.7563 last week before bouncing 90 pips on Friday.
I’d like to see the horizontal level at 0.7640 hold as support this week.
If it does, and AUDUSD buyers can get through the 0.7730 area on a daily closing basis, we could see 0.7815 or higher in the next couple of weeks.
Bitcoin (BTCUSD) has spent the last month or so consolidating.
Since reaching $42,000 in early January, Bitcoin has carved a massive bull flag pattern.
The cryptocurrency broke out from this structure on February 3rd, and retested former resistance as new support on the 4th.
For now, the area between $38,000 and $38,500 is support.
A move higher from there would see a retest of $42,000 early this week.
Alternatively, if $38,000 fails, expect a retest of the $35,000 region this week.
Either way, I think we see new all-time highs for BTCUSD this week, including a $50,000 Bitcoin price later this month.
Disclosure: The author of this article owns BTC.
Ethereum (ETHUSD) made history last week, breaking above its previous all-time high near $1,440.
That should have come as no surprise to frequent visitors of this site.
I’ve discussed the huge potential of Ethereum since the middle of 2020 when ETHUSD was trading just above $200.
I even mentioned a few weeks ago that ETH bulls should prepare for all-time highs.
With ETHUSD now above $1,440, that area should serve as support.
The upcoming CME futures launch on Monday is causing some panic selling this weekend, but that’s normal and healthy.
$1,440 is support for the week ahead, while $2,000 and $3,000 are resistance on the way up.
As I’ve said recently, I still expect ETHUSD to trade at $3,000 if not higher later this month.
Disclosure: The author of this article owns ETH.