The US Dollar has returned to a familiar range, but how will this impact your favorite currency pair next week?
Get today’s detailed analysis including key levels and targets for DXY, EURUSD, GBPUSD, USDCAD, XAUUSD.
US Dollar Index (DXY) Forecast
DXY continues to rise after recovering to 105.50.
Despite a relatively choppy rally, the outlook for the US Dollar remains broadly bullish following a fake-out below channel support in early June.
Given how the DXY is trading, a retest of the 106.50 resistance seems possible, but this may not happen until early next week, when it may pull back slightly.
Get access to new trading courses and a real-time trading community.
participate Elite Trading Program Get 90% off lifetime access! Sale ends soon!
EURUSD Forecast
EUR/USD appears to have closed below 1.0725 for a third consecutive week, limiting any upside for the currency pair.
However, it would be difficult to short here given the November 2022 trendline near 1.0650.
For now, I think it’s a good time to be patient and wait for the EURUSD to make its next move, specifically, if the bears can break out of the late 2022 trendline in the coming weeks.
GBP/USD Forecast
GBPUSD provided a good entry for shorts this week following a retest of 1.2685.
However, the volatility of price fluctuations over the summer has limited the extent of the decline.
That said, I still support downside objectives such as 1.2560 and possibly around 1.2400 over the coming weeks.
Alternatively, a sustained move above 1.2685 on the daily chart will be bullish in the short term.
Get access to new trading courses and a real-time trading community.
participate Elite Trading Program Get 90% off lifetime access! Sale ends soon!
USDCAD Forecast
USDCAD has been one of the most volatile currency pairs this year.
Following the 2021 trendline fakeout, there were some good opportunities to go long in January, but opportunities have been limited since then.
Nevertheless, the pair continues to hold above the previous descending channel and has support at 1.3640.
There is a good chance we will see the lower wick fill up on June 25th, possibly within the next week.
I continue to expect USDCAD to move higher towards 1.3830 and possibly 1.3870, but we must acknowledge the volatility in the range so far this year.
Gold (XAUUSD) Forecast
Gold is another market that has been incredibly flat in recent months.
However, XAUUSD will have to choose a direction over the next few days, so future price action could be interesting.
On the other hand, the price action since April could potentially form a ceiling pattern with a target of $2,150.
Meanwhile, this consolidation could form a wedge pattern following the rally since February.
As always, it is essential to be patient and wait for the market to make its first move.
Get access to new trading courses and a real-time trading community.
participate Elite Trading Program Get 90% off lifetime access! Sale ends soon!
