Weekly Forex Forecast For July 10-14, 2023

Today I’m going to show you exactly how I’m trading the DXY, EURUSD, GBPUSD, USDCAD, and XAUUSD next week.

The DXY closed Friday just above a critical support, and euro bulls face a critical test early next week.

USDCAD is also one to watch this week with the failed breakout between Thursday and Friday, and XAUUSD is gearing for an attractive breakout this month.

Let’s begin!

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US Dollar Index (DXY) Forecast

DXY reversed sharply on Friday, erasing all gains since June 23rd.

The 103.50 resistance level is one I’ve discussed at length, also the yearly open for the DXY.

I was a little surprised by the extent of Friday’s selloff, but the significance of 103.50 was known ahead of time.

For next week, the direction for DXY comes down to 102.00 key support.

I don’t want to get bearish on the dollar while above that confluence of support, and I think an early-week bounce could be in the cards.

Resistance for the DXY is near 103.00 with support at 102.00.

A sustained break below 102.00 would expose the 100.80 year-to-date lows.

EURUSD Forecast

EURUSD closed Friday just below a critical resistance area at 1.1000.

That will be a significant test for euro bulls this week.

Bearish price action from the 1.1000 region would suggest a partial retracement of Friday’s candle, and potentially a 1.0840 retest.

Alternatively, a sustained break above the 1.1000 area would expose 1.1080 and possibly levels like 1.1190.

GBPUSD Forecast

GBPUSD also finished last week below a critical resistance at 1.2850.

A partial retrace of Friday’s range could be in store, especially with the right bearish price action from 1.2850.

On the other hand, a sustained break above 1.2850 would open up the 1.3000 resistance area.

USDCAD Forecast

USDCAD managed a close above the November trend line on Thursday, but dollar bulls failed to hold it as new support following Friday’s NFP.

The pair starts the week at the 1.3275 key support level, with a sustained break below that opening up the 1.3100 support region.

However, as mentioned in today’s video, getting bearish on the DXY while above 102.00 could be a mistake.

XAUUSD Forecast

XAUUSD remains range bound this week between $1,895 and $1,940.

We saw gold bounce from the $1,900 confluence of support and come close to testing $1,940 resistance on Friday.

A rejection from $1,940 this week could send XAUUSD back to range lows, while a sustained break above the level would expose $1,980.

Be sure to watch the DXY, too, as the next move for the dollar will likely impact gold, given their inverse correlation.