Hey everyone! Welcome to this week's forex forecast for the week ending June 4th, 2021. I'm TraderBart with A1 Trading, and this week I'll be looking at EURCHF, GBPUSD, GBPAUD & XAUUSD.
Price has formed this bullish flag pattern following the break of the ascending triangle pattern. Price has been ranging for the past almost two weeks in the middle of the descending channel, and we're now waiting for either a touch to the channel's bottom then a rejection followed by a move to the upside, or a break of the channel now, followed by a touch of the channel's top confirmed as new support and then a continued move to the upside for a completed pattern.
Price is now once again just below the latest high in the ascending channel at 1.422, and we're now waiting for a breakout to the upside and looking for the next touch of the channel's top. Once we see price break through this resistance, look out for a retest of this level to be confirmed as new support and then long to long-term targets such as 1.45. However, look out for potential fakeouts as there are concerns about the rising Indian variant of covid cases in the UK to offset hawkish BoE comments.
As expected in the previous GA analysis, price did infact break through the bearish OB, which now transforms this same zone as a breaker block, an area to go long off now. As most retailers will see this level as an area to once again go short and "sell high" if price does come back, financial institutions will infact do the opposite and only push price to this level for more liquidity, then once again reverse and continue higher.
Price still consolidating inside this liquidity void which has now been closed up, and the gap has been filled. I'm still optimistic about price reaching the previous highs at 1960, and it is looking likely. It is inflationary fears and massive fiscal stimulus creating substantial national debt that is a significant component of dollar weakness and exceedingly strong gold pricing, which is now back over $1900 per ounce.
Today's economic figures came out in US and Canada. GDP came in higher than expected in Canada while the price of goods purchased by consumers was lower than last month. Here are some pullback ideas for USD and CAD from GDP and PCE numbers. EdgeFinder Analysis NAS100 is a bullish reading on the EdgeFinder still. […]
This week has brought more inflation data with it regarding the USD's PCE and PMI numbers. Powell is also set to speak this Friday about monetary policy going forward. The RBNZ will also release their latest interest rate news tomorrow with expectations of an unchanged rate at 5.5%. EdgeFinder Analysis GBPUSD is a bullish bias […]
This week is a big PMI week for Europe, UK and US. Additional inflationary metrics will add to the overall sentiment of these countries' monetary policies going forward. Here are some setups for the coming week on these currencies. EdgeFinder Analysis GBPCAD is now a +7 on the EdgeFinder as we wait for CPI news […]
