Weekly Forex Forecast (25/10/21) EurUsd / XauUsd + MAJOR AUD, NZD BREAKOUTS! [HD]

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

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