On this weekly Foreign exchange forecast, I’m going to indicate you precisely how I’m buying and selling EURUSD, GBPUSD, USDJPY, EURAUD, and XAUUSD by October 23, 2020.
Watch the video under, and be sure you scroll all the way down to see the charts and key ranges for the week forward.
The EURUSD hasn’t moved a lot in latest days.
The dearth of momentum and key ranges has saved me away from the pair recently.
Nonetheless, I proceed to love the concept of a remaining push into the 1.1450 area earlier than the following leg larger can materialize.
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A have a look at the month-to-month timeframe illustrates why that’s my base case situation (see the video above).
Meaning we may see the EURUSD weaken additional towards 1.1615.
An in depth under that may expose the essential assist area between 1.1450 and 1.1500.
The GBPUSD has develop into unfavorable as nicely following the shut again under the 1.3000 area.
It seemed like patrons needed to take costs larger following the shut above that space, nevertheless it wasn’t meant to be.
For now, I’m going to go away GBPUSD alone.
We could must see a rotation decrease earlier than the month-to-month chart’s bullish pattern can take maintain.
I wrote about this USDJPY construction on October 9th.
The decrease highs since February trace at continued weak spot, maybe again towards 104.20.
However regardless of breaking under a brief time period pattern line on October twelfth, USDJPY has but to supply a lot.
That’s been a constant theme for your complete market.
That mentioned, if 105.60 holds and the USDJPY continues to supply decrease highs, we’ll see one other run at 104.20.
It’s going to take a detailed under that to open the door to the following key assist at 101.00.
The EURAUD, together with many different markets, has been sideways for months.
My guess is that markets as a complete will proceed to be indecisive till after the US elections in November.
For that purpose, I’ve scaled again on my buying and selling.
However one pair I’m maintaining a tally of is EURAUD.
The pair’s indecision since June has carved a nicely outlined sideways channel.
Help is available in close to 1.6100 or simply above with resistance at 1.6570.
What’s essential right here is whether or not you commerce the channel or await the breakout.
Whereas that’s solely as much as you, I’ll say that this channel has been in place for months, which signifies that it might not maintain for much longer.
If that’s the case, it might be higher to attend for the breakout.
On high of that, discover the latest larger low from earlier this month.
That could be indicative of an imminent shut above the 1.6570 space.
If EURAUD bulls can clear 1.6570 on a day by day closing foundation, it may open the door to larger costs, resembling 1.7000.
That might be my goal following a breakout above 1.6570.
Simply keep in mind that there aren’t any ensures, and breakouts do fail.
For now, although, it’s all about whether or not patrons can clear 1.6570 to open the door to the 1.70 area.
If they’ll’t, I’ll be looking forward to a transfer all the way down to 1.6100 adopted by a break under that stage.
It seemed like gold (XAUUSD) needed to interrupt out not too long ago, however patrons couldn’t maintain costs above the 1910 area.
It now seems like we’ve got a smaller construction in play the place the higher stage extends from the August 18th excessive.
Given final week’s failure to push larger, we may see a retest of 1850 this week.
However even a detailed under 1850 wouldn’t negate the bullish outlook.
It could solely open the door to the 1790 assist stage.
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