On this weekly Foreign exchange forecast, I’m going to indicate you precisely how I’m buying and selling EURUSD, GBPUSD, EURJPY, EURNZD, and XAUUSD by January 24, 2020.
Watch the video under, and you should definitely scroll down for extra commentary and annotated charts.
The EURUSD ended final week at a crucial assist space.
We’ve got discussed this region between 1.1070 and 1.1080 for weeks now.
Discover the way it’s the intersection of a key horizontal degree that dates again to July of final yr and ascending channel assist from the 2019 low.
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Meaning EURUSD sellers want to shut the pair under this space to reveal decrease ranges.
One such degree is 1.0990.
But it surely all hinges on the confluence of assist at 1.1070/80.
So long as that space is unbroken as assist, trying to promote the EURUSD might not be one of the best thought.
You should definitely watch the video above for all the main points.
Key resistance for the week forward is available in at 1.1200, which is the highest of a descending channel that started final January.
The GBPUSD ended the week with a bearish engulfing pattern.
I mentioned this signal and the November 2019 development line you see under on Friday.
From the way in which GBPUSD completed out the week, a rotation decrease this week wouldn’t shock me.
Nevertheless, sellers should cope with a few crucial assist areas first.
That 1.2980 assist area gained’t be simple to crack.
I can say the identical for ascending channel assist that extends from the 2019 low.
For that reason, I feel GBPUSD sellers have to be cautious, no less than till we see GBPUSD shut the day under a few of these assist areas.
The EURJPY may very well be one to look at over the approaching weeks.
That’s very true if we see the euro proceed to weaken.
I’m largely all in favour of an eventual shut under ascending channel support, which is available in close to 121.00.
Such a break would expose decrease ranges together with 119.20.
For the week forward, the 122.60 area might proceed to draw sellers.
Nevertheless, I’m not all in favour of promoting up right here with out some sort of bearish sign, comparable to a pin bar or engulfing candle.
The EURNZD seems to be interesting for the week forward.
We’ve got a few issues occurring right here.
The primary is the short-term ascending channel you see within the chart under.
A each day shut under channel assist would sign weak point and in addition expose the subsequent key assist round 1.6560.
The second issue on the EURNZD shaped on the weekly timeframe.
I discussed it within the video above, however the bearish pin bar on the weekly timeframe hints at continued weak point for the pair.
Moreover, the 50% retracement of that weekly pin bar (between 1.6800 and 1.6830) might provide a brief entry this week.
The XAUUSD has spent the vast majority of 2020 consolidating.
However that shouldn’t come as a shock to frequent guests to this website.
We all know gold is coming off an unimaginable run that materialized with the December 23rd shut above the confluence of resistance at 1480.
Our targets for that transfer included 1515 and 1550.
XAUUSD reached each targets inside days of breaking out.
So, some consolidation up right here is anticipated.
A lot of you will have been asking for an replace on gold, which is why I’m together with it in right now’s forecast.
See right now’s video for all the main points.
To be sincere, although, I don’t see a lot to do right here.
I additionally suppose pairs like EURUSD and EURNZD might provide higher alternatives within the close to time period.
That mentioned, if we see XAUUSD shut above latest highs close to 1560, we might see one other run on the 1580 resistance space.
Alternatively, a transfer under 1535 would open the door to 1515.
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