In this weekly Forex forecast, I’m going to show you exactly how I’m trading EURUSD, GBPUSD, USDJPY, XAUUSD, and Altcoins through September 4, 2020.
Watch the video below, and be sure to scroll down to see the charts and key levels for the week ahead.
Table of Contents
EURUSD bulls are still in charge as of last week’s close.
As I mentioned to DPA members last week, I managed to get out of my EURUSD long from July 7th for a 500+ pip gain.
I also shorted the EURUSD on the 19th and made just over 60 pips, and went long again following the August 24th session.
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I announced all of these entries to DPA members.
For the week ahead, 1.1930 is resistance with a close above that opening the door to 1.2090.
What happens near 1.1930 will dictate whether I add to my long position.
Key support for the week ahead comes in at 1.1700.
Disclaimer: I hold a long position in EURUSD.
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GBPUSD broke free from its consolidation last week with a close above 1.3250.
If the 1.3250 holds on a daily closing basis, I like the idea of a push higher into key support near 1.3500.
Alternatively, a close back below 1.3250 would negate the idea.
The USDJPY continues to look weak against the 106.00 area.
The wedge/triangle below is a structure I’ve discussed for months.
However, the tricky part about trading away from this structure is that USDJPY is only respecting it on a monthly closing basis.
In other words, it took a monthly close beyond the structure to confirm the breakout.
With that in mind, as long as USDJPY remains below the 106.00 region on a monthly closing basis, the 101.00 region is exposed.
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If you saw last week’s forecast, you know about the wedge pattern that formed on gold (XAUUSD).
Because of the multi-year uptrend, I’ve been bullish on gold since April 1st.
That’s when I started buying a basket of junior gold miners, which I also announced to DPA members.
I chose junior miners as a way to play gold strength as those stocks tend to outperform gold by a considerable margin.
As for XAUUSD, Friday’s candle broke support, so we’ll see if buyers can hold the pair above 1940 this week.
If so, that leaves the door to 2015 wide open.
In case you aren’t familiar with the term, altcoins are all cryptocurrencies other than Bitcoin.
That includes assets like ETH and VET, to name just a couple.
If you follow me on Twitter, you’ve no doubt seen the chart below.
It shows the total market cap for altcoins, which as you can see, is about to break out.
What’s striking about the sideways consolidation since 2019 is that it perfectly matches the price action from 2014 to early 2016.
As I stated in the video above, it’s going to take a monthly close above $142 billion for the altcoin market as a whole to break free.
A close above $142 billion would expose $260 billion, followed by $476 billion, which is the all-time high for the altcoin market cap.
Over the next couple of years, I expect the cryptocurrency market to trade much higher than even that.
Disclaimer: I hold a position in several altcoins including ETH and VET.