With the forex market sideways, next week’s trade plan looks eerily similar to previous weeks.
Get the details in today’s video, including how I’m trading the DXY, EURUSD, GBPUSD, NZDUSD, and XAUUSD next week.
US Dollar Index (DXY) Forecast
The DXY is breaking below the 97.70 key area following Friday’s non-farm payroll (NFP) miss. The 97.70 area has held as support for the US dollar since mid-August, but a sustained break below would open up 96.80 next week.
Friday’s session also tagged a critical level at 97.43. That’s the unfinished auction from late July.
If the DXY can stay above 97.70, the US dollar will remain range-bound going into next week. If it breaks below that mark, it would expose the 96.70 confluence of support.
EURUSD Forecast
EURUSD is once again attempting to break above the 1.1720 resistance area. Friday’s NFP miss sent the euro rocketing higher, but bulls have work to do before the weekend.
A sustained break above 1.1720 will flip the region to new support next week. It will also open the door to the 1.1790 area, as well as the 1.1810 imbalance.
Alternatively, a daily and weekly close below 1.1715 would keep EURUSD range-bound next week.
Given the 2025 uptrend, a bullish breakout seems likely. However, as always, it’s essential to respect the chart and not let our speculations decide for us.
GBPUSD Forecast
GBPUSD is also attempting a bullish break before the weekend, with the pair trading back above its July trend line. However, pound bulls are struggling a bit in the 1.3530 resistance area.
With the DXY trading so close to its 97.70 support area, it’s unclear if GBPUSD will confirm a breakout for next week or not.
Until GBPUSD gives a clear signal, it’s best to approach the pair with caution. The best course for now is to treat it as a range-bound market until proven otherwise.
NZDUSD Forecast
NZDUSD is trading close to its descending channel resistance from July. Like many currencies in recent months, the New Zealand dollar has lacked direction.
However, the channel that began in July could offer an opportunity early next week. A retest of channel resistance near 0.5920 could offer a short opportunity, provided the DXY holds above 97.70 on Friday.
If NZDUSD remains within its July channel, a move toward 0.5730 could be in the cards this month. Alternatively, a breakout above resistance would open up recent highs near 0.6000 and 0.6050.
XAUUSD (Gold) Forecast
XAUUSD is in blue sky breakout mode following the push above $3,430 and $3,500. I discussed the likelihood of a bullish breakout in the last weekly forecast, and gold bulls haven’t disappointed.
With gold bulls in complete control, buying dips is the way to go. There are a couple of imbalances in the $3,460 region. Still, I would be surprised to see XAUUSD pull back that far, especially with $3,500 providing support.
As for resistance, round numbers like $3,600 and $3,700 could attract sellers. However, the weekly ascending channel from 2024 shows a resistance level in the $3,760 to $3,820 range later this month. That will be a level to watch, as XAUUSD bulls may start to fatigue.
