Hey everyone! Welcome to this weeks forex forecast for the week ending October 2nd, 2020. I'm TraderBart with A1 Trading, and this week I'll be looking at GBPJPY, NZDJPY, GBPUSD & XAUUSD.
Looking at the daily chart, we can see price has been moving in an ascending channel, forming higher highs and higher lows. Looking back to last weeks movements, we can see price has broken through the original channel (dark) but is still inside another possible channel (grey), which still classes as valid as it has kept above the previous low. Looking for possible rejection of the current zone and looking for a move past previous highs above 144.000.
Looking at this daily chart, price is moving in a sideways consolidation zone. Price isn't able to break the trend to form either new highs or lows. Price is currently at the support level of this ranging market. Looking at the red highlighted circle, we saw price form a bullish hammer candle followed by a shooting star before reversing and making a move to the upside. We currently have the same formation showing, suggesting a possible repeated move to the upside again.
Similarly to GJ, we can see this market moving in a clear ascending channel, forming higher highs and higher lows successfully. Price is now in my interest zone at 1.273; I'm now expecting a move to the upside, continuing this channel and holding over the long-term. We are currently seeing 3 Doji candles; however, I am still expecting price to increase.
Gold dumped and completed the symmetrical triangle break to the downside. It will be interesting to see how price reacts to this level it is currently at, whether we see a continued downwards move to lower supports or if we see a continued bullish move to 2000+.
9/17/2021 Stocks are down -0.58% this morning after coming down to test a significant level of support once again. While stocks fall, the dollar rises in the anticipation of sooner-than-expected tapering by the Fed along with a hike in interest rates starting in 2022. Our outlook Other than September being one of the worst months […]
9/16/2021 The Euro-Dollar pair is down over 0.5% today after several days in the red. Today's speech by EU president Lagarde mentioned how the economic recovery had come quicker than expected six months ago. This was praised by the prompt vaccine distribution so citizens could get back to work. Across the pond, the US just […]
9/14/2021 This morning's report on CPI m/m and core CPI m/m came in at a lower percentage than expected which resulted in a falling dollar pre-New York session. The USD is now volatile under the uncertainty of potential tapering and rising rates while the equities market seems to be rising because of this. Our outlook […]
9/13/2021 Big money has been moving out of Australia's currency for nearly a month now which has been the biggest drop in long contracts in this amount of time year-to-date. Australia's dollar index (AXY) is up 0.06% at 73.61 on the day after rebounding from the lows around 71.19. Our outlook Australia's economy has surprised […]