Hey everyone! Welcome to this week’s forex forecast for the week ending May 28th, 2021. I’m TraderBart with A1 Trading, and this week I’ll be looking at AUDUSD, GBPAUD, EURCHF & XAUUSD.
Price is still consolidating at the channel’s bottom and just below the significant resistance at 0.78. Looking at the upcoming week, there is so much room for the USD to outperform the AUD and push price to the downside, and not enough events for the AUD to outperform the USD and push price higher. I am on the sidelines for now on this pair. However, if we see price does infact break to the upside and continue the long-term ascending channel, look out for price action confirmations of the 0.78 level becoming new support, which could be a good area to go long off.
Price is once again finding itself inside this bearish OB where we saw price form a wick on the outside and closed off for the week right at the 100% point. Although I’m incredibly bullish on the Pound, we could still see price head to the downside if we see the AUD outperform the GBP in strength. The likeliness of this happening? Quite slim as 0 news events are coming up this week which could stimulate the AUD to push this market lower. We could see a new trend form on this market, so just standing on the sidelines on this pair for now.
Price has formed a bullish flag pattern after the break of this ascending triangle pattern visible on the pair. Price has touched the channel’s bottom three times now; however, it looks as if price is on its way to make a fourth. Once we see this, look out for price action confirmations of a clear rejection to that level, to then go long aiming for a completed chart pattern.
Price has closed off for the week inside this liquidity void, which was first formed in January. It was deemed that sooner or later price would reach this zone to “fill the gap”. Zooming in on the H4 timeframe, we have got a small ascending triangle pattern pointing the direction to the upside. If price continues to push higher and staying above 1843, we could see price finally complete the long-term bullish flag pattern and head towards 1960, possibly even all-time highs.