Hey everyone! Welcome to this week’s forex forecast for the week ending October 1st, 2021. I’m TraderBart with A1 Trading, and this week I’ll be looking at USDJPY, GBPUSD, GBPNZD & XAUUSD.
Price closed off for the week just above the resistance at 110.6 in this range bound market. Look out for how price reacts to this level, whether we see further bullish momentum continue pushing price higher, or if we see price retrace it’s move and reject off the resistance, or if we see price fall back below the resistance and once again confirm the level as continued resistance as price heads back lower again, filling the gaps it’s left behind.
We saw price reverse off the daily order block at 1.361 and is showing signs of a retracement to that move. Look out for how price reacts to the same order block, and if it will act once again as an area to go long off. If we see price push below this will turn this zone into a breaker block, an area to go short off.
Price continuing to consolidate in the middle of this range between 1.92-1.97. Look out for a clear break outside the short-term key levels acting as support and resistance which are 1.935 and 1.955. If price breaks above 1.955 it’s likely we’ll see further movements towards the breaker block at 1.97 whereas if we see price break below 1.935 it’s likely we’ll see price push towards 1.92.
Price is currently sitting inside the bullish order block and we’re now waiting for a catalyst to push price outside the OB. If we see price continue going lower and break below the zone, this zone will become a breaker block, an area to go short from. Currently, in the short-term, we are seeing a descending channel form in the past couple of weeks, and hence unless price forms a new trend, a breaker block situation will be likely.