Weekly Forex Forecast (March 27-31, 2023)
The DXY, EURUSD, GBPUSD, USDCAD, and EURJPY are all included in today's weekly currency prediction. This week, the US Dollar Index (DXY) made a big bullish recovery, while the EURUSD approached channel support from October.
This year, we also have a possible 900-pip chance on USDCAD and a EURJPY reversal pattern worth watching. Get more information on this and other topics in today's forex forecast.
US Dollar Index (DXY) Forecast
The DXY gave us a substantial recovery with a close above 102.60 on Thursday. I've written on this topic numerous times this month, most recently immediately before Thursday's return. After Thursday's bullish pin bar, DXY surged higher on Friday, as predicted.
Dollar bulls, on the other hand, will find stiff resistance this week near the 103.50 yearly open. It will require a daily close above that to return it to support and open the door to higher levels such as the top of this channel and 104.12.
Apart from that, we have the monthly open at 105.04 and the multi-month resistance at 105.60. So DXY bulls aren't out of the woods yet, but the dollar remains bullish when trading above the 102.60 level.
EURUSD Forecast
Last week, as the euro was trading at 1.0900, EURUSD fell from a trend line I suggested on Discord. The DXY reclaimed 102.60, as the EURUSD reversed downward from 1.0900.
In addition, the pair looks to have ended the week slightly below 1.0760, which might prove crucial early this week. Therefore, it may take the first 24 hours of the week to see whether 1.0760 is still acting as resistance.
As I mentioned on Discord, I have a EURUSD short position starting around 1.0852. I'm willing to add to it if we see follow-through, but only when EURUSD falls below 1.0650.
GBPUSD Forecast
Last week, GBPUSD challenged the 1.2200 midpoints after crafting a 4-hour rising wedge. Before the breakdown, we discussed this pattern in the members' section, and several members managed short enters with a 1.2200 goal.
In the next week, 1.2200 will serve as support, with a daily closure below that triggering a bearish fakeout and exposing the 1.1900 range lows. GBPUSD faces resistance at last week's 1.2350 highs, followed by the 1.2445 range highs.
USDCAD Forecast
I went long USDCAD last week at 1.3664, a trade I disclosed with members at the time. On Friday, I recorded roughly a 25% profit, although I still want USDCAD higher.
If bulls can hold 1.3735 early this week, it might present an entry point for a run back to 1.3800 resistance, then 1.3880. Yet, while USDCAD is trading sideways, we may see another run at 1.3660.
But, as I said on Friday, the pair might stage a 900-pip rally later this year to challenge the 1.4670 multi-year range highs. I'm positive on USDCAD as long as it closes over 1.3660 daily.
EURJPY Forecast
EURJPY has formed a possible head and shoulders pattern since May. It's a possible pattern until sellers can clinch a daily close below 139.00. A daily close below the neckline will reveal the 133.40 support zone, followed by the measured goal of 127.00. Conversely, a rise above the 145.60 high would rule out the possibility.