Hey everyone! Welcome to this week's forex forecast for the week ending April 9th, 2021. I'm TraderBart with A1 Trading, and this week I'll be looking at AUDUSD, GBPAUD, GBPNZD & XAUUSD.
Price has been steadily increasing and forming an ascending channel, creating higher highs and higher lows. Looking at recent market moves, we can see price consolidating between 0.78 and 0.757 since the start of 2021. We can also see price has formed the head & shoulder pattern with the head at 0.80, the shoulders at 0.78 and the neckline at 0.757. The past week we have seen price consolidate at this neckline, which is also at the channel's bottom. I would suggest waiting for a clear break and close below this level before taking any short positions, most traders will likely be going long at the channel's bottom, but I expect banks to take out their trades, thus making a bearish move on this pair. Take a read through my Deep Dive on AUDUSD here.
I've been showing this setup for the past couple of weeks, and pointing out this bearish OB at 1.82 where I'm looking to go short towards the EQL at 1.78. Price is also forming a rising wedge pattern which is further confirmation of an expected bearish move. Unless we see price clearly break and close above this OB, I'm looking only to go short and continue the bearish trend. Take a read through my Deep Dive on GBPAUD here.
Looking at recent moves, price has successfully completed this ascending triangle pattern visible on the chart and is currently at a bearish OB where we may see price reverse and head towards the downside again. If, however, price does break and close outside this OB, we will likely see this new uptrend continue and break previous highs from the trend. However, now wouldn't be wrong to go short and look for targets at the new support in the ascending triangle pattern.
Price is still consolidating between these two major levels, which are 1675 and 1765, and we are still yet to see a significant break below or above these levels. Long-term, I am bullish on Gold, so once we see price close above 1765, we could be looking out for buying positions on retests or at breaker blocks. If we see price close below 1675, I will look out for further price action confirmations of a continued bearish move to get into positions for a downside movement.
Today at 2:00 pm EST, the Fed will announce their latest interest rate decision. Estimates suggest a smaller hike of 25 basis points this time around. Here are some things to consider before the FOMC decision later today: The Fed has struggled to tighten their grip on inflation without causing too much disturbance in the […]
With the holiday season lingering on and a new year on the cusp of arrival, traders may glance at the calendar and notice there is not much economic news to anticipate on Friday to cap off a light week. In situations like these where there can be lulls in bullish and bearish momentum due to […]
As the fiscal year comes to a close, consumers will likely finish shopping for the holidays, and traders and investors will get some respite thanks to a long weekend due to bank holidays around the world. While concerns about further stock market selloffs may be lingering in the minds of some, a promising set of […]
