In this weekly Forex forecast, I’m going to show you exactly how I’m trading EURUSD, GBPUSD, USDJPY, GBPNZD, and XAUUSD through December 18, 2020.
Watch the video below, and be sure to scroll down to see the charts and key levels for the week ahead.
EURUSD Technicals
The EURUSD started the week with a pullback after testing the 1.2150 resistance area.
As Daily Price Action members know, I entered a long position on November 27th before the pair broke out from 1.20.
The consolidation that developed last week below 1.2150 took on the shape of a 4-hour bull flag pattern.
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EURUSD broke out from that intraday pattern on Thursday but failed to hold above it before the weekend.
It seems 1.2150 resistance was too strong for euro bulls.
That gives us a range-bound market to start the new week.
If EURUSD buyers can get above 1.2150 on a daily closing basis (using a New York close chart), it would open the door to 1.2330.
Alternatively, a close below 1.2070 would expose 1.2000 support.
Disclosure: I hold a EURUSD long position.
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GBPUSD Technicals
GBPUSD looked ready for higher ground last week after breaking above a multi-year falling wedge.
I’ve discussed that pattern a few times in recent weeks.
However, Brexit concerns had traders on edge before the weekend, which led to a GBPUSD close below the 1.3270 to 1.3320 area.
We’ll see if that close sends the pair lower this week or not.
I’m not ready to write-off the GBPUSD bullish scenario quite yet as the pair needs to climb above that 2007 trend line on a monthly closing basis.
Just because it hasn’t done it yet doesn’t mean it can’t or won’t.
The May trend line is key support for the week ahead.
That level comes in near 1.3070.
USDJPY Technicals
I wrote about this USDJPY 2012 trend line on Wednesday.
It isn’t the most established level, but I think it’s significant based on how the market has reacted to it in recent weeks.
If sellers can close USDJPY below the 103.70 area on a weekly closing basis, it would open the door to 101.00 support.
That’s my base case as long as USDJPY is carving lower highs on the daily chart.
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GBPNZD Technicals
I’ve discussed the GBPNZD short opportunity for months.
We first looked at the lower highs that were forming on October 26th.
I also took a short position in late October based on those lower highs and a weekly bearish pin bar that had developed.
I…
Read More: (Video) Weekly Forex Forecast for EURUSD, GBPUSD, USDJPY, GBPNZD, XAUUSD