Weekly Forex Forecast for USDJPY, GBPNZD, EURJPY, XAUUSD (14-19 February 2021)
Hey everyone! Welcome to this week's forex forecast for the week ending February 19th, 2021. I'm TraderBart with A1 Trading, and this week I'll be looking at USDJPY, GBPNZD, EURJPY & XAUUSD.
Price has recently broken out of this long-term descending channel and is now forming a new uptrend. I've got my eye on the H4-OB at 104.2 and the Daily-OB at 103.5. Most trades will most likely go long at the trend line, but I think price will most likely fake-out lower to take out retailers before reversing and continuing a move to the upside to take out previous highs. Moreover, the Dollar had to contend with more underwhelming jobs data in the form of claims right after Fed chair Powell delivered a somewhat dovish and downbeat address at the NY Economic Club. In short, he underlined flaws in the labour metrics that if eradicated would put the unemployment rate nearer 10% and indicated that the FOMC would overlook a near term inflation spike due to COVID related factors.
This pair has been falling in price, following the descending trend line for almost a whole year now. Price is now slowly breaking out from this structure and following the ascending triangle pattern printed on the chart. I think we could see price test the Daily-OB at 1.902-1.895 before reversing and continuing it's movement to the upside. We've also been seeing GBP gain relative strength as a whole for multiple reasons such as the vaccine rollout which would stabilise price in the medium-term, we also had the BoE keep its Official Bank Rate unchanged at 0.10%, and its QE program at £895B.
We've got this bearish OB formed from the H4 timeframe at 127.35 where I would ideally like to enter a short position. I'm expecting price to break this trend and make a move to the downside towards the OB at 125.2, to mainly stop out retail traders as most traders will likely go long now, but I'm expecting a Liquidity Raid to stop out traders, make them believe that price is breaking to the upside, then once again reverse, stopping them out and continuing to the downside. This is of course after successive price action confirmations.
This one could be a bit complicated, as there is quite a lot going on; however, my overall bias is bullish on Gold. We recently collected orders from the Bullish Daily-OB at 1790. Currently, price is forming a triangle pattern, suggesting we could see a break to either side, there is a lot of indecision in the market. In the short-term, we could see price head towards the triangle's top at 1845, which is also the long-term descending channel's top if we see price break through the intraday resistance at 1828. However, if we see price breakthrough to the upside, we should easily see price head towards that grey liquidity zone, from there on it's up to the market if we see price reverse or continue travelling to new highs.
Save time looking for setups with the EdgeFinder's watchlist! In a glance, see the EdgeFinder's current top buys and top sells.
Two surprises occurred this week from both central banks of Australia and Canada. Economists forecasted an unchanged discount rate, but the banks had other plans in mind. This caused a heavy positive move for AUD and CAD after reaction to the news. Here is what we are looking for in these types of pairs going […]
Over the past week, several news events paved the way of sentiment on monetary policy. Through the forest of mixed uncertainty, we can find the clearing of one asset that looks ready to take off. Gold has come back to a critical level, and it is up to smart money what happens next. EdgeFinder Analysis […]
Gold is up nearly half a percent today while USD down a third of one as of 10:18 am EST. As we wait for the upcoming and looming NFP numbers this Friday, we can assess the economic data we already have. EdgeFinder Analysis The stock market sighed in relief after the debt ceiling bill finally […]
DISCLAIMER: All comments made by TraderNick’s Forex Group, LLC are for educational and informational purposes only. All comments should not be construed as investment advice regarding the purchase or sale of any securities or financial instrument of any kind. Please consult with your financial adviser before making an investment decision regarding any securities or financial instruments mentioned by TraderNick’s Forex Group, LLC. TraderNick’s Forex Group, LLC assumes no responsibility for your trading and investment results. All information on any of the platforms utilized by TraderNick’s Forex Group, LLC was obtained from sources believed to be reliable, but we do not warrant its completeness or accuracy, or warrant any results from the use of the information. TraderNick’s Forex Group, LLC, its employees, representatives, and affiliated individuals may have a position or effect transactions in the securities and financial instruments herein and or otherwise employ trading strategies that may be consistent or inconsistent with the provided strategies. Trading of any type involves very high risk and may not be suitable for all investors. TraderNick’s Forex Group, LLC, its subsidiaries and all affiliated individuals assume no responsibility for your trading and investment result. Read our full disclaimer here