Today’s hot US jobs report has sparked a US dollar rally that could last all month.
Watch today’s video to see how that could impact the DXY, EURUSD, GBPUSD, XAUUSD, and AUDCAD next week.
US Dollar Index (DXY) Forecast
The DXY broke below a significant level on Monday at 104.50.
That’s the bottom of an ascending channel that has held all year for the dollar index.
However, I gave several warnings this week that the Monday breakdown could be a bear trap, also called a fakeout.
It all came down to Friday’s jobs report, which didn’t disappoint dollar bulls.
If the DXY can close today above 104.65, it will confirm a bullish fakeout and likely send the US dollar higher next week.
On the other hand, dollar bears need to hold the DXY below 104.65 and 104.50 today to keep the area intact as resistance.
I will flip aggressively bullish on the dollar next week if we get the sustained break above 104.65 this week.
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EURUSD Forecast
EURUSD is tanking today following a hot US jobs report.
This is incredibly significant as a sustained break below 1.0860 means this week’s breakout above the 2021 trend line is a failed breakout or fakeout.
I’ve issued a few warnings about this possibility this week, and today’s move is starting to confirm my suspicion.
A daily and weekly close below 1.0860 flips the area back to resistance and exposes 1.0790 and 1.0725.
In my opinion, today’s move signals a swing high for the EURUSD that could take the pair back to 1.0660 later this month.
GBPUSD Forecast
GBPUSD is also dropping hard today, although not quite as aggressively as the euro.
I got short here two days ago, as announced in real time for VIP members.
That trade is currently up about 65 pips as of writing, but the potential is much greater than that, in my opinion.
Monday’s close above the 2021 trend line followed by GBPUSD closing back below it indicated a failed breakout.
That was my signal to open a starter (short) position.
For next week, the 1.2770 region should flip to new resistance, with key support coming in at 1.2685 and 1.2560.
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XAUUSD (Gold) Forecast
XAUUSD has been sideways since April, making trading difficult for those who prefer strong trends.
However, today’s move could offer a setup early next week.
If gold can close convincingly below $2,325 today, it would set up a failed breakout early next week.
That would expose levels like $2,265 and potentially $2,200.
Alternatively, a daily close above $2,325 today would keep the level intact as support.
AUDCAD Forecast
AUDCAD is getting closer to confirming a possible fakeout above 0.9057.
We’ve been watching this for weeks in the VIP group, and today’s close could finally give us an answer.
A sustained break below the 0.9057 region would confirm a local top and expose 0.8936.
Keep in mind that today’s close would have to be convincing relative to 0.9057 for this to be actionable next week.
Alternatively, a close above that mark would keep it intact as support.
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