Weekly Forex Forecast (25/10/21) EurUsd / XauUsd + MAJOR AUD, NZD BREAKOUTS! [HD]
![Weekly Forex Forecast (25/10/21) EurUsd / XauUsd + MAJOR AUD, NZD BREAKOUTS! [HD] Weekly Forex Forecast (25/10/21) EurUsd / XauUsd + MAJOR AUD, NZD BREAKOUTS! [HD]](/pic/weekly_forex_forecast_25-10-21_eurusd_-_xauusd_major_aud_nzd_breakouts_hd_/bUNFcnVBMTVjeGc_.jpeg)
hey traders this is john fortune here this week's weekly forex forecast i hope you're having a fantastic weekend we're going to start off with a quick review of key events going into next week including a couple of interest rate decisions we need to keep an eye on next week we will then go and look at the scorecards for the currencies this week with the scores we got last week helping us to navigate the forex market so well last week we're then going to look at the individual currencies themselves in the futures markets and once we have a full assessment of the strength and weakness of the currencies we're going to go and look at the strongest versus weakest currencies in our currency pairs selection and of course we'll be prioritizing the strongest versus the weakest and finally when we've done that we're going to look at stocks gold silver and bitcoin all of which performed really well in last week's video so let's begin with a quick review of key events coming up next week the main things we need to look out for here primarily are interest rate decisions and you can see we have a couple of these we have one coming out of canada on wednesday and we also have an interest rate decision coming out of the eu on thursday now the primary reason for looking for interest rate decisions is because very often in the week and weeks preceding these interest rate decisions these big market events the currency pairs which were involved in those events for example the canadian dollar they tend to move sideways you tend to see profit taking and in fact last week in last week's video we were looking forward to this event this week it didn't happen last week we're looking forward to this week and one of the things i highlighted was because we have this interest rate decision coming up in two weeks this is what i said last week we are likely to see some profit taking coming in and we're probably going to be at the highs of markets like cadion which we've been trading to the upside and it was a profit taking opportunity and that's exactly what it turned out to be last week we didn't go anywhere in those markets we started to sell off as we're going to see when we look through the charts in a bit so the main thing going into next week is that especially the canadian dollar pairs between monday and wednesday we're unlikely to see any moves in those markets and in fact we probably should expect some continued profit taking and correction and when looking to get involved in the cad pairs next week it's preferable to wait for the interest rate decision to take place and look for the interest rate decision to provide a catalyst or an opportunity to trade in the direction that we're looking at in the markets so one of the things we're going to be looking at is canadian dollar long positions but i will only be looking at those from wednesday onwards i want to see the cad explode to the upside on wednesday and then i'll be looking to trade the follow-through wednesday thursday friday the second interest rate decision here then out of the eu now the one thing to note here is when europe is affected this also affects the us dollar since the euro makes up 57 of the dollar index they tend to move inversely with one another so there is a chance that you see the euro and the dollar really kind of meandering into thursday i personally would still like to look for positions in dollar pairs in euro pairs before thursday because if you wait for thursday and the markets move you basically miss the week so the way i like to use this information is if i know there is a risk or an increased risk of eu pairs or euro pairs or dollar pairs moving sideways into thursday i don't want to get involved in too many of those markets and just end up stuck in positions which go nowhere and then on thursday you get an explosive move one way or the other so i would still like to look for euro and dollar pairs because they make up a lot of the markets we're going to be looking at but i would only take one or two positions perhaps in those markets before thursday just in case you get stuck in those pairs and it ends up just exploding on thursday one way or the other so in short the canadian dollar pairs i will not trade until wednesday onwards and euro and us dollar pairs i will trade from monday onwards but i will trade them lightly i won't go too heavy on those markets in case nothing happens between now and thursday and finally apart from the interest rate decisions we have next week we do have advanced gdp coming out on thursday which connects to catalyst but it's at the same time as the eu interest rate decision so this time on thursday is likely to see the volatility coming in regardless of whether it's the interest rate decision or the advanced gdp in the us dollar and apart from that we also have some cpi data coming out on wednesday for australia so again what does this mean well the cpi data is another thing we can look for for a catalyst so we're looking to trade those aussie pairs wednesday morning if we get that rally or a move in the direction of the aussie pairs we're looking for you can look for the pullbacks and trading in that direction thursday friday and even wednesday because it's actually happening in the morning here so those are the catalysts i'm looking at in the forex markets going into next week and how i will personally like to play those and we will discuss more the kind of pathway that these events next week are providing going into next week when we look through the charts themselves so if we look at the currency scorecards for this week and compared to last week the first thing to note is that the japanese yen remains scoring at minus four minus four being the maximum downside score that i give any currency and of course plus four being the maximum upside now what does this mean well just as we discussed last week when a currency is at maximum minus four or maximum plus four this is indication that there is an over extension almost in the currency and that profit taken is now more likely to come in and in the case of the japanese yen for example last week any short positions had asymmetrical risk to reward so even if the markets were going to come down a little bit more if the yen was going to sell off a little bit more the risk of a snapback and a correction was greater and so instead of a short opportunity any currencies with a maximum score of four to the upside or the downside they become profit taking opportunities start to book profits wait for the markets to correct and then look to re-enter and anybody who did that in the yen pairs last week more or less picked the high in those markets because we did get a snapback but because the market remains scoring at -4 it means that for me patience is still required in the n pairs and i would be looking for continued profit taking as the most likely scenario going into next week in the yen pairs and so although overall i'm bearish on the end because it's so weak it does look like the near term correction is not yet over and i would like to see the yen dropping from -4 to maybe minus three or minus two before i look to really get involved in yen short positions once again the second important thing to note is that we have a net change of plus two in the new zealand dollar this was rated as plus one and it strengthened the most last week for those of you who watched the video last week you know euro new zealand was a market highlighted as one of the best pairs to look for and it was probably from what i remember the best performing market last week and coming into this week it does look as though the new zealand dollar is sitting in a very nice area to look for long positions in this currency once again and because we're only rated here at three and not four it suggests there's still more upside in the new zealand dollar the third thing to note going into next week is the canadian dollar which was sitting at plus four which again highlighted the fact that the market was overextended and profit taking was likely to come in and again just like the yen pairs that's exactly what we saw in the canadian pairs it has now dropped to plus three so i would be prepared to get back involved in the cad pairs to the upside but as we just looked at and why we look at the events before we look at the scorecards is that i wouldn't want to get involved in cad pairs before wednesday what i want to see is because the cad is strong i'd like to see the markets continue to correct into wednesday and then we have a rally in the canadian dollar on wednesday and it will be the follow-through from that rally from that move that i'll be interested in trading with the canadian dollar pairs in terms of aussie pound and swiss franc we have no change from the previous week the aussie remains fairly strong the pound is neutral and the swiss franc is slightly bearish and of course some of the other markets highlighted last week outside of euros euro new zealand was aussie swiss franc and new zealand swiss franc and those were markets again that outperformed last week and the final thing to note here is the fact that the dollar has weakened ever since we had that breakdown of the double top highlighted in last week's video and the fact that we got the break to the downside which we're going to look at next and at the same time we saw the us dollar weakening with an exchange of minus two and the euro of plus one this suggests that that break in the dollar index is a genuine break and it's not just a fake out where the dollar is going to start to rally of course that's always a possibility but this is suggesting the probability is for further declines now this week in the dollar pairs so to summarize here going into next week we have to be a little bit careful with the interest rate decisions we have we don't go too crazy but i do like uh the new zealand pairs primarily new zealand dollar to the upside euro new zealand to the downside once again i will be looking at new zealand swiss franc to the upside once again i like us dollar cad to the downside but from wednesday onwards i like eurocad to the downside but from wednesday onwards and i also like cad frank to the upside but again from wednesday onwards and finally what i'd be interested in going into next week is once again euro aussie to the downside i'll be interested in aussie dollar to the upside and aussie swiss franc to the upside is another market i'll be interested in looking at next week don't forget we also have the cpi data out of australia on tuesday so when we're going through the markets and looking at this perhaps we get a small correction into wednesday morning in fact the australian data is and then the cpi data is the catalyst to drive those aussie pairs in the direction we're looking for okay so let's have a look at the currencies individually we'll start with the dollar index as we always do last week we broke below the double top confirmation level of the this is now a confirmed double top and whenever we have this the question we always ask is well is this going to continue lower or is this going to be a false breakout and is the market going to continue to the upside and this is one of the reasons i pair the individual currencies with the relative analysis because very often the relative analysis will confirm or deny most of the time whether a breakout is going to be genuine or whether it's going to be a fake breakout we saw on the scorecards the dollar did weaken last week and it is weak going into this week as a result i do favor further downside in this market the next target to the downside is the 93-25 and once we break through here you can see we have the double top target as the second target to the downside the 92.87 this is the target and the next care of supports downside for this double top pattern here so i am bearish on the dollar going into next week not super bearish because it's only rated two out of four but certainly bearish enough to look for further declines and dollar weak setups next week so let's have a look at the euro the euro of course moving inversely here to the dollar index and you can see we are currently structured to the upside what we have here in fact is developing inverse head and shoulders in the euro now although this is a bullish setup this is not a super bullish chart and the fact that we are starting to break higher again you can see the relative analysis is showing us that the euro is still weak it's been boosted by the dollar starting to roll over to the downside but it's still a fairly weak currency i mean at best we're really forming a bear flag here until we start to reverse much higher so i would be inclined to treat this rally to the upside as a bit of a false break higher and i would be looking further to clients but as i said at the beginning of the video i won't trade too many euro pairs to the downside because of that interest rate decision on thursday because interest rate decisions can change markets they can reverse markets they can reverse trends so if you are trading before an interest rate decision you don't be caught on the wrong side of too many positions or too many trades if it's just one it doesn't really matter that's what your risk management's for so i am still bearish on the euro until we get a more meaningful reversal in this market and a strengthening in the scoring system if we're going to have a look at the pound the pound is starting to break higher and we came and took out the target set to the upside in this market last week going into this week you can see i highlighted for you this major double top in this area and we broke below the confirmation point of this major double top and we failed and we've now we tested it on the underside and we reversed back above it so technically speaking the pound itself is fairly bullish and it looks to be developing now a potential inverse head and shoulders we are yet to see a real right shoulder forming this and so i am bullish technically on this market when we look at it relatively compared to the other markets it's not particularly bullish it's actually kind of neutral and if you just eye the chart off here although technically it's bullish you can see we're really still nowhere compared to where we were back in july so you can see why the neutrality is coming out in the scoring system when the pound even though it's fairly bullish technically is compared with other markets and how bullish those markets are so there's a little bit of nuance there but overall the market's quite neutral as we saw in the scoring system next is the swiss franc now last week's video i highlighted this kind of one down one up scenario where we had this head and shoulders break to the downside and on the underside of this we tested with an inverse head and shoulders and we broke higher we took out the target almost to the pip that was the high in the futures market last week at the 1.09 360. so looking at the market the swiss franc in and of itself is bullish and i would be looking for further pullback in this market for advances to the upside so again you may be asking yourself well how comes the swiss franc is scored as being slightly bearish if it's structured to the upside this is why it's important to do both of those analysis together because if the swiss franc is just grinding to the upside as it currently is here i mean there is really no momentum in this market and at the same time the aussie is breaking with momentum like this the australian is still going to outperform the swiss franc you're still going to see aussie frank rising to the upside even as both the aussie and the swiss franc rise together because the aussie is rising at a faster rate and so without that relative analysis we do in the scoring system that is not something that would be necessarily easily identified because you would look at the swiss franc rising and the aussie dollar rising and say well these are both going to be neutral going into next week when last week we saw that wasn't the case aussie swiss franc took out its target just as we highlighted in last week's video even though both markets moved to the upside last week so technically slightly bullish to neutral in and of itself compared to the other markets nowhere near as bullish if we're going to have a look at japanese yen the japanese yen was a market highlighted last week as being so bearish that we should expect some profit taking coming in and we came down took out the target almost to the pit last week in this market the zero zero eight seven three twenty and we've got that profit taking coming in we started to pull back so couldn't really have worked any better in the japanese yen then we looked at it last week going into this week we see on our scoring system that it's still very very weak it's still a minus four out of minus -4 it's the maximum downside score and just as last week we had that and it resulted in profit taking it suggests to me once again that this profit taken has not finished and we could be coming back for an even deeper correction perhaps to the 89 280 and a re-test the prior low over here especially as we have what looks like a very shallow correction shallow corrections are very often followed by deep corrections test of the previous high over here or low in this case i should say and then a continuation down so overall bearish on the end just as it was last week but again this is a week we could see a deeper correction and we should be very wary about yen short positions going into this week once again i'd like to see this pull back a bit more i'd like to see this reset somewhat moving away from that -4 rating next is the cad now the canadian dollar took out its targets last week and we finished the week right at the inverse head and shoulders target highlighted in last week's video and of course this was the target from this breakout and now we've taken out this target and we started to pull back with the interest rate decision on wednesday i would not be surprised to see a deep correction so going into this week what i'll be looking for in the canadian dollar is a continued pullback in this market and then on wednesday what i'd like to see is the market rallying to the upside and that will be the opportunity to start to look for long positions to new highs in this market if i drop down to the four-hour chart it would look something like this continued correction into wednesday nice bull flag set up and then on wednesday big rally to the upside look for the pullback and that would be your opportunity in this area to look for the follow-through so that is a setup i'm going to be keeping my eye on next week next is australian dollar last week i highlighted the australian dollar to look for further advances and we did take out both targets to the upside we finished the week at the second target was more or less the high of the weekend aussie dollar the second thing which i highlighted last week was that this was actually a major breakout of the australian dollar because not only did we take out the target but we confirmed this inverse head and shoulders which was developing last week and what i said to you guys was if you could get involved in the aussie pairs before the breakout that will give you some room if you get a bit of volatility on the breakout to hold for even longer for a longer term trading some of these aussie pairs so going into next week i do like aussie dollar to the upside once again and i would be looking for a correction and then of course we have that cpi day to look for the market to correct and then that catalyst on wednesday morning and i'll be looking for the 0.75 980 as the next key of resistance to the upside in this market so interested in aussie strength plays next week and compare this major breakout to the upside in the choppiness we've seen in the pound and in the swiss franc and this momentum is why we're seeing the australian dollar appreciating even against those currencies which are moving to the upside as well and finally we have the new zealand dollar now the new zealand dollar was the strongest market going into last week we have really really nice momentum again i highlighted the 0.71690 as the target we took out the target
that was the move for last week and in the process just the same as we did in the australian dollar we broke a major high this is actually the start of a new trend to the upside and as we break higher in the australian dollar in the new zealand dollar joining the recent strengths we've had in the canadian dollar this is taking us or pointing us in the direction of more reflationary moves something to think about when we look at stocks rather than the stagflationary scenario we've seen recently with the dollar rising and also crude oil rising at the same time so major breakout to the upside in the new zealand dollar and with this momentum this is something i'm going to be interested in trading to the upside once again this week okay so let's move on to the asset selection then and the pair selection the first market i like because we have new zealand the strongest currency versus yen the weakest is new zealand yen but we're going to start by looking at the end pairs because we've already discussed that and actually just iron this off looks like we have a one two that's the third wave looks like we're actually in a fourth wave and we've got a bit more of a correction to come we looked and we saw the yen is still so weak that we should be anticipating further correction and that long positions may be a little bit premature in new zealand yen in cadian in aussie yen so i do like these markets to the upside we took out both targets to the upside in this market last week and because it looks like we're now in a fourth wave what i've just done here is i've put the fibonacci on for you because very often especially if you get a deep wave two wave four tends to be shallow in form and very often wave fours pull back to the 0.382 percent so when we put those two things together namely that the japanese yen is still very weak and it looks like in the process of seeing profit taking coming in and the fact it looks like we're in a fourth wave and we still have some distance towards the 0.382 these two things combined tell me that the chance of continued correction next week is quite high and any bullish setups in my opinion in this market next week would have limited upside versus that high probability of a continued correction in this market so i like new zealand yen but what would be great is if we see the market pulling back towards the 0.382 and then
we start to see the japanese yen going from minus four to minus three and minus two that is going to set us up for the next big rally in this market and in this case we'd be looking at a potential fifth wave to the upside in the coming weeks the next gen pair is kadyan now in last week's video i highlighted kadyen as a market to be wary of because we had a very very strong cad and we had a very very weak yen and i highlighted the fact that the last time we had this was over on the 17th of may 2021 and what followed was a near-term top and a correction and last week we did start to top out in this market so last week was identified correctly as a good time to start to put profits in these yen positions which we've been trading in previous videos to the upside and you can see we actually finished the week down on the friday compared to where we opened the week on the monday once again i've just added the fibonacci for you because it looks like we have this one two kick-started by this inverse head and shoulders there's your third wave with strong momentum to the upside and now it looks like we're in the process of this fourth wave so i would expect continued correction in this market and so again i would prefer to personally have patience on the yen pairs going into next week as the correction still looks to be playing out and the final yen pair is aussie yen we took out the target to the upside last week in aussie yen at the 85.44 again as profit taken has come into aussie yen and we're patient on the empires last week you can see we are what looks to be in a fourth wave in this market as well so no need to keep repeating the same thing aussie yen is another market that i like to the upside but near-term continued correction and profit-taking looks to be the most likely scenario going into next week in this market then the following weeks i'll be looking for this fifth-wave rally to the upside in these pairs and i would also expect to see continued correction most likely impound us dollar yen us dollar yen was a market that were highlighted last week after looking at this market to the upside for a number of weeks we finally got the target at the 114.490 and that kiev resistance combined with the fact we were looking at profit taking coming in to the japanese yen last week with our scoring system those two things combined pick the high of this us dollar japanese yen rally that we've previously seen more or less within a handful of points so patience required in all the empires in my opinion once again going into next week next is the new zealand pairs and we're looking at these next because the new zealand was the strongest currency going into this week if we look at new zealand dollar we did have a major breakout to the upside in this market i highlighted this inverse head and shoulders developing inverse head and shoulders and we broke the confirmation point of the 71670 last week in this market and you can see we had a mini reversal down here in this area as well highlighted with the 0.6980 in previous videos so going into this week i am looking further advances to the upside in new zealand any pullback in this market is viewed once again as an opportunity to look for bullish reversals up towards the next care resistance the upside the target set at the 0.7264 next is new zealand frank another market highlighted last week for moves to the upside we took out both targets and we finished the week the second target was more or less the high of the week in this market we are also looking at the start of a potential new uptrend in this market since we had a major breakout of this inverse head and shoulders as well if i drop down to the four hour chart you can see we're developing this ball flag type pattern so very simply put once again any continued correction in this market is simply viewed as it currently stands as an opportunity to look for bullish reversals up towards the next q resistance upside in the target set 0.66610 next is EURNZD, EURNZD was a market highlighted last week as one of the best markets to look for it was one of the top strongest versus weakest currencies and it was one of the best foreign markets downside last week we took out both targets and if we drop down to the four hour chart here you can see we're just forming this potential bear flag pattern here this is a very bearish chart and any continued correction to the upside is going to be viewed once again next week as an opportunity to look for bearish reversals and perhaps we correct all the way into thursday because we have an eu interest rate season on thursday and then on thursday we start to see the market break like this that would be the opportunity to look for further declines for the downside in this market down towards the 1.61 390. so i do like the new zealand pairs
going into next week but i won't be too crazy with them between monday and thursday because the us dollar the swiss franc and the euro will all be affected by the european interest rate decision and the gdp data coming out of the us on thursday next is crude oil now crude oil is a market they've been trading to the upside for quite a while now we've been taking out all the targets to the upside and last week and last week we did take out targets the 83.92 going into this week i am still bullish on crude oil any pullback in this market once again will be viewed as another opportunity to look for bullish reversals up to the next care resistance the upside in the target set the 88.75 this has been and still is of course supportive of higher canadian dollar prices so moving on to the canadian dollar pairs starting with us dollar cad us dollar cad is a market which is structured to the downside but unlike the euro and some of the dollar pairs which i am prepared to trade before the european interest rate decision on thursday i am going to be waiting for that interest rate decision on wednesday out of canada in order to trade these pairs so what i'd like to see in this market is any pullback between monday and wednesday in this market will be viewed as the opportunity to look for a bearish sell-off in this market on wednesday and if the price breaks down i'm going to be looking for a pullback and i'm going to be looking further declines follow through from the interest rate decision down towards the next key of sports and downside the target set at the 1.2179 next is eurocad previously we took out the target of the 1.43770 in this market and having taken out this target i highlighted the fact that the canadian pairs were likely going to go nowhere last week and we were going to see some profit taking coming in and eurocad just moved sideways we didn't really see anything taking place in this market why because we have the interest rate decision coming up this wednesday so going into this week what i'd like to see is a pullback in this market i'd like to see some profit taking coming in between now and wednesday and on wednesday i'm going to be looking for bearish breakouts on the interest rate decision once we get those bearish breakouts i'm going to be looking for further declines down towards the next key of support to the downside the target set with 1.4266 and the final cad pair
i like going into next week is cad frank cad frank previously traded into the target at 0.74780 and we've already started to pull back in this market so going into next week i am also looking at this as an interest rate decision setup we've already started correct so any continued correction into wednesday followed by a break higher and a rally is going to be viewed as the opportunity to look for bullish setups into the 0.7521 next we're going to look at the aussie pairs starting with the AUDUSD now in last week's video i highlighted AUDUSD as a market to look for to the upside and we did take out the target set at the 0.7470 so going into this week i do still favor once again long positions in this market we have a little bit of risk coming up with the gdp data and the eu interest rate decision however i do like this market to the upside so very simply put any event risk during the week can be managed with good risk management and not taking too much risk any pullback therefore in this market next week will be viewed as an opportunity to look for bullish reversals up towards an xq resistance outside the target set 0.7 next is EURAUD, EURAUD was a market highlighted to the downside last week as well and we did come down and take out the target set at the 1.5545 and alongside EURNZD this was highlighted as one of the better markets
to look for last week going into this week any pullback once again is simply viewed as another opportunity to look for bearish reversals in this market down to the next kf supports the downside the target set at the 1.54 and finally we have aussie frank aussie frank was a market highlighted to the upside in last week's video we have this major inverse head and shoulders breakout just like we do with the other aussie pairs that we've looked at and also the aussie in and of itself when we looked at it in the futures market we did take out the target set last week at 0.68 980 this was another good performing market highlighted last week going into this week once again any pullback as we're already getting is simply viewed as another opportunity to look for bullish reversals up towards the next q resistance the outside the target set at the zero point six nine seven five and the final two markets we'll look at here euro pound euro dollar first we'll look at euro pound very quickly euro pound is structured to the downside and this was a market highlighted in last week's video looking for a move into the target of the 0.8416 we came very close to the target and we started to pull back so any continued pullback is only as it stands considered an opportunity to look once again short positions down to the target set in last week's video at the 0.8416 which i do think is going to be achieved but you have to ask yourself the question as we always do here if you're going to short euro why short it against the pound going into next week when the pound is kind of neutral why not short it against something like the new zealand or the canadian dollar even once the interest rate decision comes out or the australian dollar that makes much more sense to me since those are stronger currencies going into next week than the pound but i am looking for this target to now be achieved from last week and the final pair we'll look at is EURUSD i always put EURUSD into the forecast and people always ask me for it but i don't always trade EURUSD every single week you can see this market is technically structured to the upside and so if i absolutely had to choose i would choose to be bullish on this market going into next week however what did we see in the scoring system we saw the us dollar as -2 and the euros minus two these currencies are very evenly matched and this was something we looked at last week and we said because of that it would be better to short EURAUD EURNZD what happened those two markets sold off hard this market just corrected we're just moving sideways in this market and this is unlikely to change next week what may change this is the interest rate decision out of the year on thursday that may break this chart one way or the other and once that happens once we stop moving sideways and we start to see a strong break to the upside or conversely if we start to break to the downside with strength and we start to see those currencies scoring as strong and weak as opposed to two weak currencies then i would be interested once again to come into this market and start to trade it so if you absolutely want to trade EURUSD going into next week any pullback would be viewed as the opportunity to look for bullish reversals however as i said last week i think there are better markets in terms of euro short positions going into next week and i don't like to trade two weak currencies against each other so moving on stocks and starting with the s p 500 last week i noted this inverse head and shoulders and the fact we were starting to break down and show reflation in the forex markets did suggest this market was likely to trade higher and i was bullish for the first time last week on the spx and we did take out the target set almost to the point here at the 4544.91
very simply put i am still bullish on stocks as we see this reflationary scenario playing out in the near term any pullback is just simply viewed as another opportunity to look for bullish reversals into the 4581.46 next is the nasdaq last week in this market i highlighted the inverse head and shoulders setting up just as we saw in a number of these stock indices and we did break higher and we had a really nice rally to the upside we stopped just shy of the target set at the 15 54903 so very simply put i am looking for this target to be taken out next week either we come up and take out the target straight away or we correct down and then start to come up and take out the target either way once we've taken out the 15 549.03 i am going to be looking up to the second key area of resistance the outside the target set at 15 549.03 so i am bullish on the nasdaq going into
next week once again next is the dow jones now in last week's video i highlighted the fact that we had reversed the upside and i was bullish on the dow jones and we came very close to the target set last week so very simply put any pullback in this market is simply viewed once again as an opportunity to start to look for bullish setups into the target set last week at 35 924.21 and if we come and take out this target first and then pull back i'm going to be looking up towards target two at the three six four two eight point four four next is the russell now i noted previously when we had the sell-off in the other stock indices that the russell small cap which is more sensitive to the business cycle was actually holding up and we were just continuing sideways this is likely to precede a stronger rally to the upside especially as we're seeing not just the other stock markets breaking out to the upside but also the forex markets and the commodity currencies in particular pointing us towards a more reflationary scenario i am looking for the russell now to start to break higher we're still fairly choppy in this market but any correction is simply viewed as another opportunity to try and position into a bigger breakout in this market i'm going to be looking first and foremost up towards the next care resistance the upside in the target set at 2323.32 but just bear in mind because of the length of this contraction this correction in the russell i do think there's a very good chance we could explode quite strongly to the upside in this market with quite a bit of momentum i mean if you look at the market which has just been coiling and correcting really since march so just bear in mind the 232.32 is the
next key of resistance to the upside but do not be surprised if we start to break higher to see this start to take off to the upside with some real momentum and certainly small cap stocks are something i would want to be bullish on if we start to move higher in the stock markets from here and last but not least we have the nifty now the nifty has been a fantastic performing market and we took out the target almost to the point last week at the eighteen five six nine point twenty going into this week i am bullish on this market once again we started to correct and we're pulling back possibly towards this high over here at the seventeen seven nine two point nine five but any pullback in this market is simply viewed as a big ball flag opportunity i'm going to be looking for further advances in the nifty up towards the next target set at the 18 738.40 now we're going to finish off here by looking at gold silver and bitcoin now the first thing is that gold and silver are two markets that i am going to be looking at and keeping on next week because when you have an interest rate decision out of the us out of the eu or you have gdp data out of the us the precious metals markets gold silver they tend to be less affected by these events than say AUDUSD to the upside NZDUSD or etc so i like to pivot to the precious metals if we have some big events coming up which could see the markets kind of move sideways or get very volatile when the event takes place so precious metals are still affected by these events but they tend to not be as effective structurally as some of the currencies so before we look at gold or silver let's quickly look at gold versus silver because this is important going into next week we have had a big breakdown in the gold silver ratio you can see we had this head and shoulders break down the next target is 72.91 and if we break this we're going to be heading down to 70.74 so what this is telling me is going into next week if we're going to start to see a correction take place in the gold silver ratio before further downside silver is actually a market that is looking more appealing than gold going into next week i like both of them but silver looks to be the better player going into next week so let's start off by looking at XAGUSD so XAGUSD as a market i highlighted the upside last week and as we got the dollar devaluing we saw XAGUSD continuing to rise i do like silver going into this week then we took out both targets last week finishing the week right at the second target here in XAGUSD going into this week any pullback in this market is viewed as another opportunity to look for bullish reversals up towards the next q resistance the upside the target set the 25.60 next is XAUUSD now XAUUSD was a market i highlighted the upside
in last week's video we did come and take out the target to the 1801.78 going into this week any pullback in this market is simply viewed as another opportunity to start to look for bullish reversals up towards the next care resistance outside the target set at the 1819.11 and what's interesting here is if we can break through here the 183401 is the confirmation level of a major inverse head and shoulders breakout in XAUUSD so we're making our way towards that but we're not yet there if we break the 1834.01 this is the start of a new trend to the upside in XAUUSD so if you can position into XAUUSD somewhere in this area and you're in gold by the time it breaks the 183401 there is potential for much bigger upside if we can start to trade above the 1834.01
so getting in early before the major breakout is a good policy in setups like this if you can and last but not least we have bitcoin bitcoin has been a great performing market in the weekly forecast we turned bullish down in this area i can't remember exactly where but somewhere in this area right as we started to rally and i am still bullish on bitcoin we took out both targets to the upside and our second target pretty much called the high of the week here in bitcoin going into this week this pullback is simply viewed as it stands as another opportunity for anybody not already involved to start to look for bullish reversals in this market i'm going to be looking up towards the target set in bitcoin at the 67 516. so that is it for me for this week guys i do like new zealand strength plays going into next week i quite like the aussie plays going into next week the slight problem we have is that euro and dollar weakness are both good looking shorts going into next week but they may be interfered with with the interest rate decision and the gdp data on thursday if that's the case we can always pivot to gold and silver as potential alternatives since they should be less affected by the events coming out on thursday but i do like the euro and the dollar pairs going into next week so long as not too much risk is taken before those events on thursday and i also like the canadian dollar pairs but for me they're going to be from wednesday onwards let's see if we can get some interest rate decision catalysts in the direction of the markets we're looking at next week so that said i hope you all have a fantastic weekend and i hope you all have a fantastic week next week a big thanks to everybody who has subscribed to the channel and a big thank to everybody who comments on the channel a regular basis as well so all the best to every single one of you and as always don't forget to trade safely you
2021-10-24 20:02