Welcome to this week's forex forecast. After last week's chaotic spike in gold on the fake news of Powell's dismissal, the real fireworks are just ahead. The ECB's rate decision and Jerome Powell's first public speech since the drama are scheduled for this week - setting the stage for major volatility across the Dollar, Euro, and beyond. Nikkhil has broken it all down so you can approach the week clear-headed and prepared.
Dollar Index (DXY):
The Dollar Index recently bounced off strong monthly Fibonacci support at 96.28 after rejecting between 78.6% to 85.4% retracement levels. MACD across higher timeframes still leans bearish, but double bullish divergence on the daily and a confirmed trendline breakout on the 4H point to a short-term corrective rally. Nikkhil expects a move toward the 98.90 zone, possibly followed by a retracement before continuation higher.
EURJPY:
Euro-Yen has completed a bullish structure on the monthly and is mid-way through a powerful third wave up. The pair is targeting 174.54 to 175.54 as the next resistance zone before potentially pulling back around the ECB announcement. The bigger picture remains bullish, with 182 to 183 in sight. Nikkhil plans to buy the dips, particularly if price revisits the 170 area.
GBPUSD:
Pound-Dollar tapped a major resistance at 1.3750 (Fib 0.618 extension) and is showing signs of exhaustion on MACD. Bearish divergence and structure breaks on the daily and 4H suggest a deeper correction is underway. Nikkhil is eyeing the 1.3145 area as a potential downside target, with 1.3520 acting as strong resistance. Any bounce into this level could offer shorting opportunities.
Gold (XAUUSD):
Gold is technically bullish on the monthly chart, but lower timeframes show potential for a near-term pullback. A double top at 3,436 and a breached trendline on the daily suggest weakness. Nikkhil is watching the 3,400 - 3,412 zone closely, if it holds as resistance, downside targets sit at 3,300 and 3,232. Until that level is broken convincingly, his bias is to sell rallies.
Floki (FLOKI/USDT):
This week's surprise pick is Floki, a meme coin showing signs of a sharp rebound. Price recently bounced from the golden zone (78.6% - 85.4% retracement) and is aiming for Fib extension targets at 0.0001734 and 0.0001995. That’s a potential 42.44% gain from current levels. Nikkhil sees short-term pullbacks as opportunities to accumulate.
Watch the full breakdown now and get your plan in place before the herd reacts.
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Here's to a profitable week ahead!
We’ll talk soon!
Team Moneytize