Home / Technical Analysis / Weekly Forex Forecast: September 28, 2020

Weekly Forex Forecast: September 28, 2020

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Major Stock Indices Overview

S&P 500 US Index

The S&P 500 index and the Dow industrial average are ending the week with losses (S&P fell by -0.63%, Dow fell by -1.75%) against the Nasdaq 100 that rose by 1.11%.

The S&P index tested the 3204.44 level and showed strong bullish evidence to the upside. The index is now trading between 50 and 100 moving averages. For the next week, the market will try to move higher to test the supply zone around 3402-3448 levels.

The main driver of the equity market will be the COVID-19 vaccine as clinical trials showed a safe immune response in most patients.

FTSE 100 Index

The European shares closed lower with the UK’s FTSE 100 index fell by -2.8%, the German DAX fell by -5.15%, and the France’s CAC40 fell by -5.24% last week.

The FTSE index moved lower to test the demand zone around 5742-5841 levels. The index then moved sideways and closing above the 5841 level. The major trend on this market is down with a possibility of a retracement back up to test the 6016 next week.

If the index fails to break above the previous high, the next potential target is to test the 5645 level.

Nikkei 225 Index

The Nikkei index fell by -0.67% last week and closed at 23185. The index is still moving sideways between 22545 and 23495 levels.

The index found support level around the 50 moving average with a possibility of re-testing the 23495 level again next week.

Forex Market Forecast

US Dollar Index

On the daily chart, price moved higher creating a new demand zone around 92.690-93.180 levels and tested the supply zone at 94.670 level.

If this supply zone holds, price will retrace back down to test the 93.180 level. This is a good demand zone to go long as long as price gives us bullish evidence to go up.

Price could break above the supply zone without retracing back down, in this case, our target is the supply zone around 97.060-97.780 levels.

The COT report shows more bears than bulls with 24.5% net long positions versus 48% net short positions.

EURUSD

On the daily chart, price created a new supply zone around 1.18050-1.19000 levels and showed strong bearish evidence to the downside.

Price now is approaching the demand zone around 1.15030-1.15950 levels, if price tests this zone and shows enough bullish evidence we go long. The target is to test the 1.18050 level.

If price tests and breaks below the demand zone, the next target is te 1.14560 level.

The COT report shows more bulls than bears with 11.3% net long positions versus 7.8% net short positions.

GBPUSD

On the daily chart, price created a new supply zone around 1.29120-1.29990 levels and showed strong bearish evidence to the downside. As price tested the demand zone around 1.26430-1.27300 levels, it showed weak evidence of a strong demand imbalance at that level.

If price breaks below this demand zone and tests the 1.25900 and shows strong bullish evidence, we go long. Our target is to test the 1.29120 level.

The COT report shows more bulls than bears with 27% net long positions versus 16.3% net short positions.

AUDUSD

On the daily chart, price created a new supply zone around 0.72850-0.73340 levels and showed strong bearish evidence to the downside.

Price then moved lower and tested the demand zone around 0.69580-0.70230 levels. If price shows enough bullish evidence we go long with target at 0.71960 level. If price breaks below the 0.69580 level, we wait until it tests the 0.68710 level to go long.

The COT report shows more bulls than bears with 33.8% net long positions versus 9.8% net short positions.

NZDUSD

On the daily chart, price created a new supply zone around 0.67520-0.67970 levels and showed strong bearish evidence to the downside.

Price tested the demand zone around 0.64850-0.65390 levels and showed weak bullish evidence to go long. If price breaks above the previous high, we go long with targets at 0.66760 and 0.67520 levels.

If price breaks below this demand zone, we wait until it tests the 0.64490 level and shows enough bullish evidence to go up.

The COT report shows more bears than bulls with 28.1% net long positions versus 39.8% net short positions.

USDCAD

On the daily chart, price moved higher with strong bullish candles and tested the supply zone around 1.33890-1.34590 levels. If this supply zone holds, price will move all the way down to 1.33350 level as a potential target.

If price breaks above the 1.34590 level, we go long to test the 1.35600 and 1.36510 levels.

The COT report shows more bulls than bears with 34.9% net long positions versus 13.3% net short positions.

USDCHF

On the daily chart, price created a new demand zone around 0.90520-0.91120 levels and showed strong bullish evidence to the upside. Price then tested the supply zone around 0.92970-0.93510 levels. Price would react to this supply and move lower to 0.92025 and 0.91120 levels as potential targets.

If price breaks above the 0.93510 level, we wait until it reacts to 0.93800 level to go short.

The COT report shows more bears than bulls with 9.3% net long positions versus 38.6% net short positions.

USDJPY

On the daily chart, price created a new demand zone around 103.980-104.690 levels and showed strong bullish evidence to the upside.

If price tests the supply zone around 106.040-106.300 levels and shows enough bearish evidence, we short with a potential target at 104.690 level.

If price breaks above the 106.300 level, the next target is the 106.800 level.

The COT report shows more bulls than bears with 20.2% net long positions versus 18.7% net short positions.

Commodities

Gold

On the daily chart, price created a new supply zone around 1946.10-1973.39 levels and showed strong bearish evidence to the downside.

This week, price could retrace back up to test a 4 hour supply zone around 1900-1919 levels before moving down to test the 1811.79 level.

Crude Oil

On the daily chart, price created a new demand zone around 39.11 and 39.93 levels and showed some bullish evidence to the upside.

If price breaks above the previous high, the next target is the 42.44 level. If price breaks below this demand zone, we wait until it tests the 37.74 level to go long.

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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