Home / Technical Analysis / Weekly Forex Forecast: September 14, 2020

Weekly Forex Forecast: September 14, 2020

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Major Stock Indices Overview

S&P 500 US Index

The S&P 500 index fell by 2.51% and closed above the weekly low at 3340 a gain of +0.05% in Friday. The decline for the S&P 500 index was its worst since June, with all three benchmarks (Nasdaq Composite, Dow Jones Industrial Average, S&P 500) seeing losses in September. The sharp drop in tech stocks was enough to wipe off gains in other sectors driving the S&P 500 index down for two weeks in a row.

The index tested the supply zone around 3528-3586 levels and retraced back down to 3353 level (38.2% fib.). The index is trading below 50 moving average with a possibility of bearish continuation to the downside.

If price breaks the previous low at 3309, the next target is the 3204.44 level (61.8% fib.). If price starts showing some bullish momentum, the next potential target is to re-test the 3528 level.

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FTSE 100 Index

The UK’s FTSE 100 index closed at 6032 with a gain of +4.02% last week. The index tested the demand zone around 5742-5841 levels and showed strong bullish evidence to the upside last week.

If price couldn’t break above the resistance level at 6046, the next potential targets are 5624 and 5464 levels. If the index breaks the resistance and the previous high, the next potential target is to re-test the 6277 level.

Nikkei 225 Index

The Nikkei 225 index closed at 23406 with a gain of +0.87% last week. The index is moving sideways between 22545 and 23495 levels and trading above the 50 moving average.

If price continues to rise, we could see a retest of the supply zone followed by a bounce to the downside.

Forex Market Forecast

US Dollar Index

On the daily chart, price has tested the supply zone around 93.370-93.870 levels and showed some bullish evidence that could push price higher next week.

If the market is correcting, we would see price breaking above the 93.870 level and testing the 38.2% fib. at 94.101. If price continues to rise above the 94.101 level, the next potential target is the supply zone around 94.680-95.360 levels.

The COT report shows more bulls than bears with 42.8% net long positions versus 39.6% net short positions.

EURUSD

On the daily chart, price is moving sideways between 1.16950 and 1.20310 levels. We could see a correction on EURUSD to either 1.16905 or 1.14951 levels before price resumes its bullish momentum.

If price continues moving higher and breaking above the previous high without correcting, the next potential target is 1.22700 level.

The COT report shows more bulls than bears with 11.7% net long positions versus 7.4% net short positions.

GBPUSD

On the daily chart, price fell sharply last week after breaking below the 1.32 level. Price then tested the demand zone around 1.26380-127530 levels and formed a doji at the close.

If price shows enough bullish momentum to the upside, the next target is to test the 1.29570 level. If price breaks below the 1.27530 level and shows bearish evidence, we wait until it tests the 1.26070 to go long.

The COT report shows more bulls than bears with 18.9% net long positions versus 12.5% net short positions.

AUDUSD

On the daily chart, price is moving sideways between 0.71490 and 0.73850 levels. This is a strong zone where both monthly and weekly supply zones overlap suggesting a downside movement to 0.69642 level. But as price keeps moving in a range, we wait until it breaks the trendline to short the AUDUSD with targets at 0.71490 and 0.69642 levels.

If price continues to move higher and breaks the previous high, the next targets are the 0.73850 and 0.74961 levels.

The COT report shows more bulls than bears with 27.4% net long positions versus 19.8% net short positions.

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NZDUSD

On the daily chart, price created a new supply zone around 0.66900-0.67340 levels confirming a potential reversal to the downside. Price then tested the demand zone around 0.65960-0.66440 levels and started moving sideways.

For this week, I expect to see a correction to the downside to either 0.65947 or 0.65254 levels. If price tests one of these key levels and starts showing bullish evidence, we go long.

If price breaks above 0.66900 level at the open and starts showing some bullish evidence to the upside, we go long with a target around 0.67735 level.

The COT report shows more bears than bulls with 31% net long positions versus 34.3% net short positions.

USDCAD

On the daily chart, price created a new demand zone around 1.30670-1.31150 levels and went up to test the supply zone around 1.32210-1.32630 levels. Price then moved down to test the demand zone and showed some bullish evidence that could push price higher above the 1.32210 level.

If price breaks above 1.32630 level, the next potential target is 1.33110 level. A key level to mention here for this market is the 1.34466 level.

The COT report shows more bulls than bears with 30% net long positions versus 13.7% net short positions.

USDCHF

On the daily chart, price tested the supply zone around 0.91590-0.91990 levels and showed strong bearish evidence to the downside. Price might retrace back up to re-test the supply zone before moving down to test the 0.90130 level.

The COT report shows more bears than bulls with 9.5% net long positions versus 33.7% net short positions.

USDJPY

On the daily chart, price is moving sideways with a potential breakout to the upside to test the 106.800 and 107.580 levels.

If price breaks the previous low and created a new lower low, the next potential target is to re-test the 105.110 level.

The COT report shows more bulls then bears with 18.1% net long positions versus 15.1% net short positions.

Commodities

Gold

On the daily chart, Gold has been moving sideways since August unable to break above the 1974 level.

If price doesn’t break above the previous high, the next target is to test the 1885 level.

If price breaks to the upside, the next potential targets are 1974 and 2025 levels.

Crude Oil

On the daily chart, price created a supply zone around 38.43-39.37 levels confirming a bearish momentum. Price might retrace back up and retest the 38.43 level before moving down to 34.44 level as a weekly target.

Risk Disclaimer: By viewing any material or using this weekly forex forecast within this site, you agree that it is general educational material and you will not hold anybody or entity responsible for loss or damages resulting from the content provided here by “TradingFXHub”. Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Past performance is not indicative of future results. The results found in this weekly forex forecast are based on simulated or hypothetical performance results that have certain inherent limitations. Individual results vary and no representation is made that clients will or are likely to achieve profits or incur losses comparable to those that may be shown.

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