Hey everyone! Welcome to this week's forex forecast for the week ending July 9th, 2021. I'm TraderBart with A1 Trading, and this week I'll be looking at USDJPY, EURAUD, NZDCHF & XAUUSD.
Price has recently touched the top of this ascending channel, but since NFP on Friday, we've seen a reversal, and price is already making its way to the next touch of the channel's bottom. This chart is quite empty, no major order blocks or key levels are showing; it's more just basic trend trading at the moment. Price is currently at the previous high before the major break, so expect this level to be confirmed as new support or resistance during Monday.
Price is struggling to break through the resistance at 1.586 after the break of this ascending channel pattern. This is now the third time we've seen price reject this area, and a triple top entry would have been ideal, but I did say I did not expect it to happen. I am waiting on price to once again reach the new support level at 1.566, where I'll be looking out for price action confirmations of rejections and bullish reversal before going long on this pair.
Price has continued to stay below the channel's top following my previous analysis last week here. We did see signs of rejection however, the bearish move did not occur. I will continue to keep my eyes on this pair, and I'm waiting on either price to break out to the upside, make a retracement and use the channel's top as its new area of support before continuing the bullish move, OR, we could see price reject the top now and continue heading to the downside.
Gold has still yet to make any significant moves or breaks, similar to the start of May, where we saw price consolidate in this exact area for a while before a significant move happened. We did see Gold break out of the triangle pattern to the downside, but price retraced higher than it should have, which deems this setup invalid now. Price is approaching the channel's top where I'm looking for a breakout, then enter once price retraces its move and uses the channel's top as a new area of support to go long off.
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