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Is a Forex Bull Run Imminent?

Published 05/25/2023, 04:58 AM
Updated 07/09/2023, 06:31 AM

We wrote: US dollar index holding support at 103.00 keeps the outlook positive in what I believe is the start of a bull run. Although we failed to beat last week's high at 103.60/65 I doubt this will form a double top & eventually we will a break higher to target resistance at 103.95/104.05.

This has played out exactly as predicted as we hit 104.00 as I write.

A break above 104.20 is needed for the next buy signal.

Any correction to the downside meets support at 103.55/35, so if you are not long the dollar yet, you could for example, try to sell EURUSD if this level is hit in the index.

AUD/USD has broken to the downside as expected. With hindsight I should have had us selling a break below 6560, but this has been so horribly range-bound for over 2 months I wanted to wait for confirmation & the close of a daily candle.

Now that we have it, I would be a seller on a bounce to 6560/80, with a stop above 6605.

FINALLY, THIS IS A SWING TRADE OPPORTUNITY. We could drop up to 200 pips from 6560/80 - so hold shorts initially targeting 6500/6490 & 6450/40, perhaps as far as 6400/6390.  

USD/CHF is headed higher as predicted, although we have not had a chance to buy into longs. We are overbought short term, so perhaps we can see a small correction to support at 9010/900. Longs need stops below 8990. 

CAD/JPY support at 101.70-50. Longs need stops below 101.30.

Targets: 102.10, 102.60

EUR/JPY up one day, down the next day in the 1 week sideways trend, so it is only of use to scalpers as we hold a 130 pip range.

Minor support at 149.50/40. Longs need stops below 149.30.

Strong support at 148.75/55. Longs need stops below 148.30.

GBP/CAD longs at support at 167.60/40 worked this week on the bounce to my target of 168.55.

Try longs again at support at 167.60/40 - stop below 167.10.

Targets: 168.20, 168.50, 168.90.

EUR/USD shorts at strong resistance at 1.0830/40 worked perfectly as we break last week's low at 1.0768/58 as predicted. I hope you have managed to hold the short position this week as we now target Fibonacci support at 1.0730/20 for profit taking.

EUR/CAD made a high for the day exactly at resistance at 1.4635/55. Shorts need stops above 1.4670.

Targets: 1.4600, 1.4570.

USD/CAD has broken out of the range for a buy signal but overbought short term so a correction to a buying opportunity at 1.3550/30 is possible - longs need stops below 1.3515.

GBP/USD shorts at resistance at 1.2445/65 worked perfectly with a high for the day at 1.2469 & a 130 pip collapse to 1.2340 (hitting my first target of 1.2360) as we look for my next target of 1.2320.

Latest comments

GPB/USD trend to under 1.xx as too strong to USD.
Thanks
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