Hey everyone! Welcome to this week’s forex forecast for the week ending June 18th, 2021. I’m TraderBart with A1 Trading, and this week I’ll be looking at USDCAD, GPBNZD, EURAUD & XAUUSD.
Continuing on from my deep dive on USDCAD here, on Friday we saw price break through the resistance at 1.214, and price has tapped the 100% mark in the bearish OB just above as I expected would happen. Traders who went short at 1.214 were most likely stopped out, and I am expecting a move back down again, as traders are likely to expect a new trend form or possibly a touch of the channel’s top at around 1.225. This could also happen however, look out for price action confirmations of either price breaking through the OB or showing signs of 1.214 becoming new support.
Price is once again at the bearish OB, which has successfully moved to the downside every time price reached it. We have also got a rising wedge formation too also suggesting a bearish move to follow. I am almost speculating that there are too many confluences of a bearish move in a retailers mind that I almost believe we will see this OB become broken and will instead form as a breaker block, an area to go long off. Look out for how price moves and reacts to this level before you make any decisions.
Price is tapping the new support level in this ascending triangle pattern again, and I’m looking to catch a bullish move to the upside. If we see price break intraday resistance at 1.575, this is a confirmation of continued bullishness in this market, and it’s likely we’ll see price complete this pattern, looking for targets at around 1.595 – 1.60.
Gold continues to consolidate in the liquidity void, and still, no new trends have been made. We may see price retrace back down to 1843 or even 1800, where we have a breaker block to take out retailers who went long at the new support formed by the intraday ascending triangle pattern, at around 1878. Once this happens, we could see price continue heading higher and shooting towards long-term highs.