Forex Weekly Forecast (January 16 – 20, 2023)
The EURUSD, GBPUSD, USDJPY, USDCAD, and S&P 500 are the subject of today's weekly Forex prediction (SPX500). We have some amazing technicals in the works for next week, including USDCAD support in July 2021 and an all-time high trend line for the S& P 500.
EURUSD Forecast
Last week, the EURUSD burst out, eventually closing above the 1.0700 range high. On Thursday, the euro broke through 1.0780 and found support there on Friday. So, next week, keep an eye on that crucial level. As long as the EURUSD closes above 1.0780 daily, the pair appears to be rather optimistic.
However, as indicated in today's video, the weekly time frame provides a strong barrier for bulls next week at 1.0870. That is the December 2016 weekly trend line. So a daily close above that will be required to open up additional levels, including perhaps 1.1120. Given the foregoing, waiting for a close above 1.0870 or below 1.0780 before acting isn't a terrible idea.
GBPUSD Forecast
GBPUSD has recently been a volatile market. On the one hand, the short-term uptrend that has been in place since September remains intact, thus longs appear logical.
On the other hand, the GBPUSD has been trading sideways for weeks, making it a tough pair to trade. With that in mind, I'll be watching two important stages this week. The first is the upward trend line from the closing on September 26th. This week, that level is expected to be about 1.2030.
The second resistance level I'm keeping an eye on is 1.2300. In mid-December, GBPUSD failed to hold above this level, resulting in a bearish fakeout.
Any retest of 1.2300 is thus bearish unless bulls accomplish a daily closing above it.
USDJPY Forecast
Thursday confirmed the breach, and Friday came dangerously close to testing 126.70 support. However, the issue for traders is that the USDJPY has yet to revisit 130.60 as fresh resistance. Given that it is the swing low for May 2022, the 126.70 regions should provide support if touched this week.
A rebound from there might push USDJPY back to the resistance confluence at 130.60. Given the classic technicals, USDJPY is on my watch list regardless of the short-term activity.
USDCAD Forecast
Given that it is the trend line from July 2021, the 1.3300 area is likely to draw buyers if tested this week. Not only that, but the level has had a significant impact since its inception in September 2021.
Positive market movement from 1.3300 would take USDCAD higher, maybe back to 1.3570. A close below 1.3300, on the other hand, would open the door to lower levels such as 1.3320 and potentially 1.3020.
S&P 500 (SPX500) Forecast
The SPX (S& P 500 futures) is reaching major resistance. The trend line from the all-time high is at 4,020 and will be a factor this week. A retest of 4,020 will almost certainly generate selling pressure. Will bulls finally have a daily close above it, or will it cause a bearish reversal like it has for months?
A daily close below 4,020 would confirm the break and reveal 4,140, while a daily close above that line would confirm the break and expose 4,140. Although it is not obvious from the daily time frame, 4,140 is a significant monthly level for SPX. The key support level for the S& P 500 is 3,910.
Posted On:
14-Jan-2023 09:01:43
