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.
6/22/2021 The yen index is down -0.33% on the day and is extending its losses to the downside on weakness in the currency. The Fed's decision to raise rates sooner than we expected has caused US bonds to slip as well, sending yields closer to Japan's bond yields, thus decreasing appetite for the USD. JXY […]
Crypto Stumbles to Lows, EU Awaits PMI Data, SPX Flat6/22/2021 EUR/USD Analysis EU bounces off support and oscillates between support and resistance from 1.19100 and 1.18700. German and French PMI data will report tomorrow which could add extra volatility in the market. The US also has PMI news coming out that day, so we can […]
6/21/2021 Recent News China cracks down: China's attempt to ban mining comes to fruition as their grip gets tighter around this policy. These digital miners now have no choice but to stop everything they're doing in China or move elsewhere which is temporarily hurting the coin's hash rate. Banks are now being told to cut […]