Weekly Forex Forecast (February 20-24, 2023)

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Today’s weekly Forex forecast covers the EURUSD, GBPUSD, USDJPY, USDCAD, and AUDUSD.

The dollar slammed into resistance on Friday while the euro is caught between support and resistance.

Meanwhile, pairs like USDJPY and USDCAD offer some of the best technicals out there right now.

Watch the video and scroll down to view the charts to prepare for next week.

EURUSD Forecast

EURUSD finished the week above the 1.0620 support level that I’ve mentioned recently.

It even formed a bullish-looking candle on Friday.

However, I have a couple of concerns about the bullish potential for EURUSD this week.

The first is that the euro ended the week below the November trend line at 1.0710.

We saw EURUSD close below this level on Wednesday and didn’t manage to recover.

My second concern is that Friday’s candle, despite being bullish, occurred within sideways price action.

Any candlestick pattern that develops within consolidation like this is much less reliable.

So for the week ahead, I’d like to see if EURUSD can reclaim that 1.0710 trend line on a daily closing basis, and also 1.0780.

If so, we could get a rally.

But if EURUSD closes a day below 1.0620, the next key support doesn’t come in until 1.0480.

EURUSD key support and resistance
EURUSD daily time frame

GBPUSD Forecast

GBPUSD bounced right from the 1.1915 support level I’ve had outlined for weeks.

However, bulls face a significant test at 1.2130, which failed to hold as support last week.

So, for now, the GBPUSD range between 1.1915 and 1.2450 is intact.

That said, any daily close below 1.1915 would be bearish toward 1.1635.

Alternatively, a daily close above 1.2130 would expose 1.2300.

GBPUSD key horizontal levels
GBPUSD daily time frame

USDJPY Forecast

USDJPY has played out nicely since breaking channel resistance on February 3rd.

It even respected 130.70 for a few days before continuing higher.

But bulls have a new test ahead at 134.40. We saw USDJPY test this level for three consecutive days last week.

It will take a daily close (using New York close charts) above 134.40 to secure the breakout and open up levels like 138.00.

Alternatively, a pullback from USDJPY this week will likely find support at 132.90.

USDJPY breakout levels
USDJPY daily time frame

USDCAD Forecast

The USDCAD triangle I’ve mentioned a few times is still at the top of my watchlist.

We saw the pair come close to testing resistance on Friday, but not quite.

The lower level here extends from July 2021, making it incredibly significant.

But the key to trading a consolidation pattern like this is waiting for the confirmed breakout.

At least that’s how I like to approach them.

That means waiting for a daily close either above trend line resistance or below support.

Given the 700-pip height of this triangle, the resulting move could be substantial, which makes USDCAD well worth the wait.

USDCAD triangle pattern
USDCAD daily time frame

AUDUSD Forecast

AUDUSD is a tricky pair at the moment. The pair broke below the November channel this week at 0.6900 but is holding above 0.6870 support.

So for the week ahead, we could see a retest of the 0.6930 area, but any daily close below 0.6870 would be bearish and expose the 0.6640 region.

Alternatively, a daily close above 0.6930 and 0.6960 would be bullish for AUDUSD.

AUDUSD key levels
AUDUSD daily time frame

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