Weekly Forex Forecast (July 3-7, 2023)

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

The DXY hit our 103.50 target last week, but what’s in store next week?

Today’s video shares details on an upcoming dollar breakout, an early-week opportunity on AUDUSD, and a must-hold level for XAUUSD bulls, and much more.

Watch the video and scroll down for the annotated charts and analysis.

Let’s begin!

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US Dollar Index (DXY) Forecast

The DXY hit our target last week at 103.50, a confluence of resistance based on several factors.

I’ve discussed 103.50 several times recently, including last week’s forecast, and nearly every YouTube video last week.

The DXY index reached a high of 103.54 on Friday before reversing by nearly 0.80%.

That was also the trigger for me to book profits on my EURUSD short, which I did on Friday for over 80 pips.

It was a trade I mentioned to Daily Price Action members as I took the trade earlier in the week.

For the week ahead, the DXY remains range bounce between 102.00 support and 103.50 resistance.

It will take a sustained break beyond one of these areas to trigger a more substantial move from the US dollar.

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EURUSD Forecast

EURUSD played out nicely last week, offering a short opportunity from the 1.0950-1.0970 resistance area.

My target for the EURUSD short was 1.0820/30.

The euro hit 1.0835 on Friday before bouncing nearly 100 pips.

I shared that trade with members as I took it and also made a video about the idea on June 28th.

For the week ahead, the EURUSD remains range bound between the 1.0830/40 area and 1.0970 resistance.

However, using the DXY analysis above as a proxy for trading EURUSD is the better approach, given the clean levels on the USD index chart.

GBPUSD Forecast

GBPUSD confirmed a potential fakeout about 1.2750 last week, suggesting a top may be in place for the pound.

However, it will depend on how the pair reacts to the 1.2750 resistance area this week.

A rejection from there would expose the October 2022 trend line near 1.2550.

Alternatively, a sustained break back above 1.2750 would be bullish for GBPUSD and expose recent highs and potentially 1.3000.

That said, I’m not as interested in trading GBPUSD as other pairs.

AUDUSD Forecast

AUDUSD has some really clean horizontal levels to trade.

The pair also broke out from a short-term descending trend line on the hourly time frame.

However, the 0.6670 resistance area could trigger an AUDUSD pullback early next week.

If we see the dollar rotate lower next week, an AUDUSD long from the 0.6620 region could be appealing.

As discussed in today’s video, a partial fill of the June upper wick near 0.6780 could be in store for AUDUSD.

XAUUSD Forecast

We saw XAUUSD (gold) bounce from the $1,900 support area I talked about in last week’s video.

Gold also reclaimed $1,912, a level that should serve as support next week.

The $1,900 area is a must-hold support region for XAUUSD bulls.

As long as the pair holds above it, I have to respect the potential for further gains.

However, $1,940 is key resistance and a level gold bulls have to take out to reverse the downtrend and expose $1,980.