In this weekly market forecast, I’m going to show you exactly how I’m trading EURUSD, GBPUSD, NZDUSD, ETHUSDT, and DOTUSDT through March 25, 2022.
Watch the video below, and be sure to scroll down to see the charts and key levels for the week ahead.
EURUSD tried to get through the 1.1080 resistance area last week but failed.
That’s the region that euro bulls have to clear on a daily closing basis to flip it to support and expose 1.1480. Until then, it’s resistance.
Support for EURUSD remains that 1.0850 area, which is channel support from the early 2000s.
As mentioned previously, I’ll entertain a long following a reclaim of 1.1080, but I’m not especially interested in shorting the euro.
Part of that has to do with the fact that EURUSD is down 450 pips since February.
Attempting to short a market that’s down that much in a few weeks is risky, in my opinion. I also think the upside holds the better risk to reward ratio.
But it all comes down to EURUSD closing back above the 1.1080 region.
GBPUSD is bouncing from key support at 1.30. However, the 1.32 handle holds the key to a move higher.
We’ve discussed the 1.32 area at length in recent videos. It’s going to take a daily close above that level to flip it back to support.
However, GBPUSD did offer a long opportunity last week.
I got long at 1.3090 on the 17th, an entry I announced in the member’s area. I’m interested in adding to it this week, but only following a close above 1.32.
Based on the potential 4-hour inverse head and shoulders pattern, my target is 1.338. That’s a key level I’ve discussed recently and also the measured objective.
Alternatively, a close below the 1.3090 area would negate the idea and re-expose 1.30.
I mentioned NZDUSD on March 10th. The idea was to wait for a daily close above the 0.6860 area for a long toward 0.7050.
NZDUSD accomplished that with a daily and weekly close above 0.6860.
That flips the region to support for the week ahead. As long as NZDUSD is above it on a daily closing basis, I like it higher toward 0.70-0.705 in the coming days.
Alternatively, a daily close back below 0.6860 would negate the bullish bias and expose 0.6780.
Ethereum has played out beautifully so far. If you saw my recent ETH videos, you know I was looking for a breakout this month.
I also got long ETH at $2,600, which I announced to members, and added to that position above $2,770.
I’ll take a little profit at $3,000 as I think that area will attract sellers. However, a daily close above that would open up $3,600, in my opinion.
So my plan is the same. Book some profit at $3,000 in case of a pullback and add that back if we get the close above the $3,000 region for a move to $3,600.
Only a daily close back below $2,700 would invalidate the breakout.
Polkadot looks ready to breakout from consolidation after pulling back 74% from its all-time high.
However, for DOT to rally from here, bulls need to secure a daily close above $19.40. Do that, and I think we could see a move back to $23 or +19%.
But keep in mind that $19.40 is technically resistance on the daily time frame until DOT closes a day above that level.
It also doesn’t need to happen today. Polkadot could secure that close within the next few days and it would be just as valid.