Markets whipsawed last week on the latest tariff news, but which key levels could trigger meaningful moves next week?
Watch today’s video for a full breakdown of the DXY, EURUSD, GBPUSD, USDCHF, and XAUUSD.
US Dollar Index (DXY) Forecast
The DXY remains sideways in choppy conditions as markets digest the latest developments in the ongoing tariff saga.
This volatility has made trading more challenging, starting with the DXY itself.
However, dollar bulls are testing the 108.10 resistance today following Trump’s comments on reciprocal tariffs.
If the DXY closes the week above 108.10, a push to 109.00 or higher next week looks likely.
A close below 108.10, on the other hand, would keep it intact as resistance.
EURUSD Forecast
EURUSD is breaking down today after a volatile start to the week.
The pair remains range-bound between 1.0200 and 1.0530 but has spent most of the week between 1.0350 and 1.0440.
A weekly close below 1.0350 would flip the level back to resistance, exposing 1.0200 and potentially lower if sellers break through support.
Alternatively, a close above 1.0350 would keep it intact as support next week.
GBPUSD Forecast
GBPUSD was rejected from the confluence of resistance I’ve discussed recently.
The area at 1.2500 is a key horizontal level and the top of a descending channel from September.
The pound offered several opportunities to short from 1.2500 this week, including Friday’s high following non-farm payroll.
For next week, the direction for GBPUSD depends on where Friday’s session closes relative to 1.2380.
A close below 1.2380 flips the level to resistance and re-exposes 1.2300 and 1.2200.
If GBPUSD closes this week above 1.2380, the level will remain intact as support early next week with resistance at 1.2460.
USDCHF Forecast
USDCHF is bouncing from the channel support I mentioned a couple of weeks ago.
The level at 0.9000 was also discussed in the VIP group last week.
Bulls face a key test at 0.9150 next week, a range resistance the pair has held below since April 2023.
A sustained break above 0.9150 would signal a breakout toward 0.9415, but sellers are likely to defend range highs if tested.
XAUUSD (Gold) Forecast
Gold has been a runaway train this year as investors seek protection from uncertainty.
Technically, XAUUSD is overextended, but that doesn’t mean it must pull back.
With the uptrend and new all-time highs, any dips into key support remain potential buying opportunities.
One level to watch next week is $2,830, the February 3rd high, which hasn’t been tested as new support.
If that fails, $2,790 is next.
XAUUSD is building resistance near $2,882, but a move to $3,000 within the next couple of months isn’t off the table.
