Weekly Forex Forecast (January 30 – February 3, 2023)

by Justin Bennett  · 

January 28, 2023

by Justin Bennett  · 

January 28, 2023

by Justin Bennett  · 

January 28, 2023

Today’s weekly Forex forecast covers the EURUSD, GBPUSD, USDJPY, AUDUSD, and XAUUSD (gold).

Markets have some key decisions to make this week, including a terminal pattern on USDJPY and a potentially significant AUDUSD monthly close.

Watch the video and scroll down to view the charts to prepare for next week.

EURUSD Forecast

EURUSD remains a challenging market to trade, given the tight ranges that have developed.

That said, the short-term momentum favors bulls, especially while EURUSD is above 1.0850, 1.0780, and even 1.0700 on a daily closing basis.

If the euro can stay above 1.0850 on a daily closing basis this week and take out last week’s highs, a run to 1.1120 could be in the cards.

Alternatively, losing 1.0850 on a daily closing basis would spell trouble for the EURUSD.

EURUSD key support and resistance areas
EURUSD daily time frame

GBPUSD Forecast

Like EURUSD, GBPUSD remained sideways last week. It’s also still trading below the 1.2450 December high.

That’s the level bulls need to clear on a daily closing basis.

A daily close above 1.2450 would open up the next key resistance at 1.2670.

Key support for GBPUSD this week is 1.2300, and below that is the September 26th trend line near 1.2200.

GBPUSD range with support and resistance
GBPUSD daily time frame

USDJPY Forecast

The USDJPY still has the best technicals in Forex right now.

I’ve changed the structure from last week, drawing a descending channel instead of a falling wedge, as it fits the technicals better.

However, the same 130.60 resistance level remains for USDJPY bulls.

A daily close above that area exposes 134.50, while a close below the short-term trend line support near 129.40 would signal weakness and open up 126.70.

USDJPY descending channel with terminal pattern
USDJPY daily time frame

AUDUSD Forecast

After reaching our 0.7030 target on January 18th, AUDUSD pulled back into new support at 0.6870, bounced from there, and hit our next target at 0.7130 last week.

That 0.7130 area is resistance for AUDUSD this week. It’s also a level bulls have to clear on a daily closing basis to expose 0.7260.

However, don’t be surprised if we see an early week pullback into 0.7030.

As mentioned in today’s video, the January close on Tuesday could have significant implications this year as it relates to 0.7030.

AUDUSD range with support and resistance
AUDUSD daily time frame

XAUUSD Forecast

XAUUSD has trended higher since November, gaining an impressive 19% at last week’s close.

However, gold bulls face a significant test this week at $1,920.

That’s a confluence of support for XAUUSD that may dictate whether we see a continuation to $2,000, or a pullback into $1,876.

Regardless, I think we eventually see a retest of $2,000 from gold. So I continue to favor buying XAUUSD pullbacks into key support.

XAUUSD (gold) uptrend with key support area
XAUUSD (gold) daily time frame

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