Hey everyone! Welcome to this week’s forex forecast for the week ending June 11th, 2021. I’m TraderBart with A1 Trading, and this week I’ll be looking at USDCAD, EURAUD, EURCHF & XAUUSD.
Price has continued to stay within the range between 1.214 – 1.202, and we’re still yet to see a break in either direction. Long-term, I am bearish on this market and looking for the long-term descending channel since March 2020 to continue. Retailers will see resistance and likely to go short at 1.214; however, I expect price to push further towards 1.22 to the bearish OB on the H8 timeframe to take out retailers positions before reversing and continuing the long-term trend.
Price has recently broken out of this ascending triangle pattern, and price is finally beginning to approach the chart pattern’s resistance at 1.562. We’re not waiting to confirm this becoming a new level of support and an area to potentially go long off. However, as this market has been in a long-term downtrend, this may fail, and instead price could break lower, break the pattern and form a new pattern continuing the downtrend.
Similarly to EA, price has also broken out of an ascending triangle pattern and has since formed a bullish flag pattern. However, price is failing to break through support at 1.093 to create the fourth touch in the channel before reversing and completing the bullish flag pattern. If we see price break out of the channel before the fourth touch, this could be a sign that we will complete the pattern sooner than expected and look out for price action confirmations.
Price continues to consolidate around the liquidity void which it has recently collected from, and we are still waiting to see price form a new pattern or trend to look out for to predict where price is heading next. I’m a gold bull, and I believe we could see price head towards previous long-term highs around 2000. Look out for the breaker block at 1800 as this could be an area price may shoot to, stopping out any retailers going long early, before reversing and continuing the upwards move.