Weekly Forex Forecast For July 24-28, 2023

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

The dollar index reclaimed a significant level last week that could trigger further upside for the greenback.

Likewise, we saw material breakdowns from pairs like EURUSD and AUDUSD ahead of Wednesday’s FOMC.

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 recovered significant lost ground last week after losing over 2% the week before.

Dollar bulls managed to close the index above the 100.80 former year-to-date lows, which will likely serve as support next week.

However, the DXY 3-day resistance at 101.25 is one I’d like to see broker before getting too bullish on the dollar.

A sustained break above 101.25 opens up 102.00 and potentially 102.80.

Alternatively, a close back below 100.80 would turn the DXY bearish again.

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EURUSD Forecast

The EURUSD is one reason why I think we could see further dollar strength next week.

The pair closed below a significant area at 1.1180 last week, confirming a fakeout above the area.

Fakeouts like this often trigger extended moves in the opposite direction, meaning a lower EURUSD.

However, Wednesday’s Fed rate decision and statement will carry significant weight for EURUSD and will likely determine the next big move.

For next week, though, 1.1170/80 is resistance, with support coming in at 1.1070, followed by the confluence of support at 1.0950.

GBPUSD Forecast

In last week’s forecast, I mentioned the GBPUSD fakeout above the top of an ascending channel from June.

I was looking for a pullback from the pound, and we got that and more last week.

The fakeout triggered a 280-pip move last week, taking out the 1.3000 level.

For next week, 1.2850 is likely to trigger a bounce, but a retest of the 1.2800 channel support seems likely at some point.

Although GBPUSD is holding above 1.2850 support, last week’s candle looks relatively bearish, so I’ll be looking for shorts next week.

AUDUSD Forecast

AUDUSD performed nicely last week, generating a 79-pip profit between Thursday and Friday’s price action.

I shared this entry with Daily Price Action members in real time.

Last week’s fakeout above 0.6800 looks relatively bearish for the Australian dollar.

However, given the hourly descending channel discussed in today’s video, a bounce early next week seems likely.

A retest of 0.6800 could offer a favorable selling opportunity next week with targets of 0.6700 and 0.6590.

XAUUSD Forecast

XAUUSD (gold) has been an excellent technical market to trade.

I discussed the long idea from $1,900 support and the breakout from the $1,940 confluence with a target of $1,980.

Gold slammed into $1,980 resistance last week, at which time I told DPA members that a pullback was likely.

From here, I think a range-bound XAUUSD between $1,980 and $1,940 is the most likely outcome before resolution.

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