Today’s weekly forex forecast covers DXY, EURUSD, GBPUSD, USDJPY, and XAUUSD.
Friday’s session offered another big move from the dollar, so it’s only until Monday to confirm or deny pairs like EURUSD and GBPUSD.
There’s also a gold potential topping pattern that you can’t miss.
Watch the video, scroll down to view the charts, and get ready for the next week.
US Dollar Index (DXY) Forecast
DXY broke above key support last week after testing 100.80, the year-to-date low since February.
So far the structure looks almost identical to the Jan/Feb bottom.
But we need to see more from the dollar bulls this week, including Monday’s rally to confirm what we saw on Friday.
Monday’s close above 101.50 will start to confirm a short-term bottom for the dollar, but a sustained break above 102.60 at the beginning of the month is also needed.
Alternatively, a close below 101.50 and a continuous break below 100.80 indicates bearish continuation towards 99.30.
EURUSD Forecast
EURUSD failed to sustain above 1.1030 on Friday, so we’ll see if Monday’s price action confirms or negates a bearish reversal.
If EURUSD breaks below 1.1030 earlier this week, the 1.0930 area could be next.
Alternatively, a sustained break above 1.1030 would be bullish for the EUR, opening levels like 1.1180.
GBP USD Prediction
GBPUSD tried to break out of April 4th high last week but failed on Friday.
That said, the pound found support on Friday near the 24th March uptrend line at 1.2400.
The 1.2430-1.2450 area is once again acting as resistance for GBPUSD, although it could trigger some strength on Monday.
A break below that trend line could see a move to 1.2290 and towards the 1.2200 midrange.
US dollar forecast
USDJPY lost the 132.90 handle on Thursday but managed a bullish recovery on Friday.
The 134.40 area will be exposed as long as the pair remains above that mark on the higher timeframes.
However, given the importance since December, we expect sellers to defend 134.40 next week.
I became bullish on USDJPY at 130.90 earlier this month and will stay there as long as the pair trades above channel support.
Gold (XAUUSD) Forecast
XAUUSD confirmed a possible bearish fakeout last week after closing above the August trendline.
However, gold is still above the $1,990 support level, so I don’t think it would be wise to short Friday’s close.
If it breaks below $1,990, it could hit $1,920 later this month.
Alternatively, a break above last week’s high would see the bearish excursion disappear and open levels like $2,070.
