24 May 2021

Weekly Forecast 23 - 28 May 2021

Trading Updates

EURJPY

After an amazing bullish run on EURJPY, I expect to see bearish pullbacks happening soon. On the weekly time frame the price is currently holding a key resistance zone with a MACD bearish divergence on histogram in play. I see these as signs of weakening bullish momentum and a potential bearish correction building up.

H4 has broken below the most recent uptrend line and so far, is holding below the broken trend line. I want to see the price going below the most recent low at 132.434 and then I expect to see further continuation lower to the downside. Here is my trading idea -

EURNZD

After completing the long bearish run on the daily timeframe, the EURNZD bounced upside after completing a clean bullish divergence on the MACD moving averages. There is a good chance for the price to move higher further towards the key resistance zone formed by the 38.2% (1.70479) - 50% (1.72721) Fibonacci retracement zones of the bearish trend and the previous swing highs (As seen on the image below). So I expect further the bullish correction to continue for now.

The price has also broken above a range on the daily time frame. I see this as a sign favouring the buyers, so based on the facts above, I anticipate to see further moves to the upside in the short term.

On the H4 chart my plan is very simple – further rallies to follow after the pullback.

Gold

After clean three waves upside on the H4 chart, we now have a bearish divergence on the moving averages of the MACD. Right now, I wait to see the price moving lower and breaking below the swing low at 1852, which would validate a potential bearish correction. Once the validation is triggered, I expected to see a corrective move downside. Here is my expectation, on the image below.