Forex Market Forecast | Top Pairs ahead of NFP Release XAUUSD, EURUSD, GBPUSD, USDJPY, GBPJPY
This week we are looking at a very eventful week over all in the markets. Most of the setups we were watching last week and the week before we anticipate to get some entries this week.
The dollar index is showing a lot of dollar strength ahead of the trading wee. Last week we had a break of the previous high/resistance of the ranging zone around 96.900 which we’re looking at a retest within the trading week before trending higher. We also have NFP release come Friday amongst other economic news.
For the pair similar to DXY we’re looking at the same kind of setup with a potential short entry at 1.11865 with SL above previous resistance.
The pond strength has really dwindled against the dollar causing the pair to fall back into the channel we had been trading for the better part of late December early January. We had a break of the top of the channel for which we were waiting for a retest around 1.36200 to pick some long positions. Price instead broke back into the channel continuing the long term sell. We are looking to get in on short positions with our target around the 1.31898 support zone. Entry triggers within the channel would be retracement for retest of demand zones or break and retest of minor trend lines on lower time frames (flag patterns).
Gold against the dollar the hasn’t been much change in the pair’s performance since our Friday analysis. We’re still waiting and watching for a definitive break of the confluence support zone around 1787 to have price fall back up into the consolidation zone, or a break out of it to catch some pips on the sell side. Until then, we are indifferent on the pair.
Pound Yen, if you have been following our analysis on this pair over the weeks then you may have caught an early around entry around 157.100. We are now looking at a retracement around 155.270 which provides for another entry continuing the trend down. Remember it’s important to look for confluence in lower time frames to get better entries on your trades.
With the dollar strength, USDJPY seems to continue it’s long-term uptrend. Even so, there are no clear entry points for us until the pair breaks the resistance level around 116.340. However looking at the Fibonacci retracement we see a retest of the 61.8% level at 115.257 for an aggressive entry, remember to look for confluence in lower time frames. Another entry would have been at 114.683 at the open of the first bear candle that forms after the break of the downward trend line