Weekly Forex Forecast For January 8-12, 2024

by Justin Bennett  · 

January 6, 2024

by Justin Bennett  · 

January 6, 2024

by Justin Bennett  · 

January 6, 2024

Today I’m going to show you exactly how I’m trading the US Dollar Index (DXY), EURUSD, GBPUSD, USDCHF, and USDCAD.

The dollar reclaimed 100.90 to start the year, but can bulls follow through with a sustained break above 102.60?

Meanwhile, EURUSD and GBPUSD are holding below resistance, and USDCAD has secured a bullish reclaim of its 2021 trend line.

I’ll discuss all of that and more in today’s video, including key levels and targets for next week.

Let’s begin!

US Dollar Index (DXY) Forecast

The DXY is a mixed bag so far in 2024.

On the one hand, the dollar index reclaimed the 101.90 area last week, showing the potential for further upside in January.

However, Friday’s failure at 102.60 resistance following non-farm payroll (NFP) leaves the dollar contained below that mark.

I’m remaining cautiously bullish on the DXY while above 101.80/90 on a daily closing basis.

But the index needs to reclaim the 102.60 region next week to expose levels like 103.50 and 104.20.

The 101.80 area is now a must-hold support for dollar bulls, and a sustained break above 104.20 is required to force a change in structure.

EURUSD Forecast

EURUSD is still holding below the July trend line I shared last week.

Friday’s session swept some of the buy-side liquidity following NFP, but the EURUSD failed to close above that level.

That leaves the pair caught between 1.0880 support and 1.0960 resistance for the week ahead.

This is similar to the dollar’s range discussed above, which makes sense as the DXY and EURUSD are inversely correlated.

It will take a sustained break below 1.0880 on the higher time frames to flip the level to resistance and expose 1.0755.

Alternatively, a break above 1.0960 would find resistance at 1.1000.

Holiday SALE! Save 70% on all subscriptions to the Daily Price Action VIP trading group. Limited time offer!

GBPUSD Forecast

GBPUSD remains a challenging currency pair to trade.

The market has been locked between 1.2550 support and 1.2800 resistance since November.

Additionally, GBPUSD is pressing against the November trend line I discussed last week, but isn’t offering any clear signals.

For those reasons, I prefer to look elsewhere for a favorable opportunity.

That said, a daily close below 1.2550 would open up downside targets toward 1.2400.

The bullish potential, on the other hand, is a little more difficult to decipher, given the DXY holding above 101.90 and GBPUSD trading just below 1.2800 resistance.

USDCHF Forecast

USDCHF is holding below the July lows at 0.8566.

We saw the pair test the level as resistance on Friday, making longs unfavorable at the moment.

However, if the DXY can gain ground next week above 102.60 and USDCHF can reclaim 0.8566 on a daily closing basis, the setup would be incredibly appealing.

So, for now, USDCHF is a waiting game to see if bulls can force a reclaim of 0.8566.

Such a reclaim would open up levels like 0.8670 and potentially 0.8900.

Holiday SALE! Save 70% on all subscriptions to the Daily Price Action VIP trading group. Limited time offer!

USDCAD Forecast

USDCAD has reclaimed its 2021 trend line on a daily and weekly closing basis.

However, the pair remains below the 1.3380 resistance I discussed last week.

So although the 2021 trend line is back to serving as resistance, as witnessed during Friday’s session, USDCAD bulls still have work to do.

A sustained break above 1.3380 next week would be bullish toward 1.3480 and possibly 1.3600.

Alternatively, a daily close back below the 2021 trend line would indicate weakness.

Continue Learning

Leave a Reply

Your email address will not be published. Required fields are marked *

{"email":"Email address invalid","url":"Website address invalid","required":"Required field missing"}