Welcome to this week's forex forecast for the trading period starting on May 27th. In this week’s issue, we explore the latest movements and expectations for DXY, AUDCHF, GBPAUD, EURUSD, and GOLD.
Let's quickly review the trends, supports, resistances, and potential future movements in these key forex instruments.
DXY
The DXY showed signs of completing its bullish cycle, indicating a shift towards a bearish trend in the upcoming months. Based on Fibonacci retracement analysis, the DXY is expected to correct towards the 50% level, hinting at a downward continuation. Current expectations suggest a bearish stance, with a probable target on the lower boundary of its rising channel.
AUDCHF
AUDCHF is currently positioned close to significant resistance points, showing signs of a potential slowdown. Despite the recent bullish moves, bearish divergence is building up, suggesting a possible short-term bearish reversal. However, the long-term bullish cycle is still intact, aiming for a target at the 200% Fibonacci extension level.
GBPAUD
GBPAUD is navigating a critical juncture at the boundary of a triangular formation, indicating potential for volatility. The monthly charts highlight a possible end to a corrective phase and the start of a new bullish wave. Key resistance is found around 2.0, with targets set above this level in the long run. Short-term, there are opportunities to join bullish moves on pullbacks, especially after breaks above significant levels.
EURUSD
EURUSD appears to be regaining bullish momentum, with potential targets set at 1.10 and 1.135 in the upcoming periods. The pair shows strong bullish divergence and a break of structure on higher time frames, supporting a continued bullish outlook.
GOLD
Gold has experienced a sharp decline following hawkish FMC meeting minutes, but the long-term bullish outlook remains unchanged. Key levels to watch are $2,500 and $2,570 as major targets. Short-term, the market may face downward pressure, but any pullbacks towards lower support zones should be viewed as buying opportunities. You should prepare for potential short-term selling but maintain a focus on the overarching bullish trajectory.
This week presents a mix of short-term bearish opportunities and long-term bullish potential across several major forex instruments.
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As always, we encourage you to stay vigilant, keep an eye on critical support and resistance levels, and make the most informed trading decisions.
Wishing you all a profitable week ahead.
We’ll talk soon,
Team Moneytize