Welcome to this week’s forex Forecast. After a historic drop in precious metals, the market has entered one of its most pivotal phases in recent years. Gold has shed over 16% and silver has crashed more than 40%, one of the worst drawdowns in over a decade. But if you followed Nikkhil’s midweek guidance, you stayed out of the storm. Now, with NFP on deck and interest rate decisions from the RBA, BoE, and ECB ahead, the coming days demand clarity and control. In this week's Forex Forecast, Nikkhil walks you through the precise levels and patterns across USD pairs and metals, so you’re ready and not reactive.
DXY (Dollar Index)
The dollar continues to move within a long-term bearish structure across the higher timeframes. Monthly and weekly charts show persistent lower highs and lower lows, with the key support at 95.08 still untouched. While the daily and 4H frames show no bullish divergence, the 1H chart reveals a hint of one, suggesting a short-term corrective bounce is underway. Resistance levels are now stacking up at 97.65, followed by the fib zone at 98.45 - 98.69. But make no mistake, this bounce is corrective, not a reversal.
EURUSD
The long-term bias remains firmly bullish. Price is holding above the falling trendline on the 3-month chart, backed by a clean bullish divergence and multiple magnet targets. After a shallow retracement to the 23.6% level, price bounced off support and is eyeing higher ground. Nikkhil expects a pullback toward the 1.1790 magnet support zone - an area he’s watching closely to begin accumulating long positions. If a deeper correction follows, 1.1540 - 1.1620 becomes the next zone of interest.
USDJPY
The structure is messy - a mixed bag across timeframes. The 3-month chart shows long-term bullish strength, but monthly and weekly frames are flashing warning signs. Price is facing resistance at 157.35 - 157.80, where bearish divergence is building. On the daily and 4H charts, the recent bounce appears corrective, not impulsive. Unless price breaks below 153.11, this bounce could extend to resistance, but sellers may soon regain control.
Gold (XAUUSD)
Last week, Nikkhil warned you clearly: avoid gold until the structure becomes clear. That call saved traders from one of the worst weekly crashes in years. Now, price has landed directly on the 4,677 - 4,682 magnet support, a zone Nikkhil highlighted well in advance. Despite the drop, the bullish structure across all major timeframes remains intact, no trendlines broken, no bearish divergence. This was a liquidity sweep, not a trend reversal.
Two scenarios lie ahead: if price holds above 4,927, we could see a quick bounce back toward 5153–5332. But if support gives way, a deeper drop to 4,556 - 4,481 may follow, a zone Nikkhil sees as a high-conviction buy area. Either way, he’s preparing to accumulate for a continuation toward $5,000 and beyond.
Markets are volatile, but setups don’t lie. Whether you’re trading gold, majors, or dollar strength, the key is to act with preparation, not panic. Nikkhil has laid out every key level and structure so you can plan your week like a pro.
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Team Moneytize