Weekly Forex Forecast For July 17-21, 2023

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

The DXY suffered its most significant breakdown of 2023 last week, while the EURUSD and GBPUSD enjoyed bullish breakouts above critical areas.

We also saw USDCAD bounce from the 2021 trend line I’ve mentioned and an XAUUSD breakout above $1,940.

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

Let’s begin!

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US Dollar Index (DXY) Forecast

The DXY broke down from the previous year-to-date lows at 101.00 last week.

The level had held as support between February and April, making last week’s US dollar breakdown incredibly significant.

Key support for the DXY next week comes in at 99.30, the former range highs from 2022.

While 101.00 is new resistance for the dollar index, a bullish reclaim there in the coming days would be bullish for the USD.

I’m bearish on the DXY while below 101.00 on the higher time frames.

EURUSD Forecast

EURUSD had its biggest one-week rally last week, gaining an impressive 260 pips.

We caught the EURUSD long from 1.0970 in the Daily Price Action member’s area with a target of 1.1140.

Here’s the members-only setup I posted on Monday:

That worked out to a 160-pip profit for members, and the EURUSD didn’t stop there.

For the week ahead, 1.1180 is a must hold support area for bulls.

A sustained break back below that region would be bearish for the EURUSD as it would signal that this latest move is a fakeout.

Bullish price action from 1.1180 next week could extend the rally toward 1.1320.

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GBPUSD Forecast

GBPUSD also enjoyed a significant rally last week on the back of the DXY breakdown.

The pair is trading above the key 1.3000 level, making it a must-hold level for bulls.

Given the intraday price action on Friday, a pullback to the 1.3000 support area early this week seems likely.

From there, GBPUSD needs to hold above the level to keep the pressure on 1.3170.

Alternatively, a sustained break below 1.3000 would expose 1.2850.

USDCAD Forecast

USDCAD is another one that setup for us in the DPA trading group last week.

I announced the short setup in Monday’s members-only video when USDCAD was trading at 1.3280 with a target of 1.3100.

I also posted this to members shortly after the breakdown:

That 4-hour breakdown triggered a 180-pip selloff from USDCAD.

The pair reached our 1.3100 target on Thursday, with a low for the week of 1.3093 before bouncing significantly on Friday.

Whether we see USDCAD sustained Friday’s bounce depends heavily on the DXY.

The trend line from May 31st will also be significant for USDCAD next week.

This is a case where the highest conviction trade may not develop until we see what happens with the DXY around that 101.00 handle.

XAUUSD Forecast

XAUUSD (gold) broke above the $1,940 area that I’ve mentioned several times in recent videos.

That flips to a must-hold level for XAUUSD bulls, as any sustained break below that would be bearish for gold.

A pullback to $1,940 next week could offer a favorable buying opportunity, with targets of the $1,960 mid-range and the $1,980 range highs.

However, the DXY will play a role here, given the negative correlation between the dollar and gold.

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