Weekly Forex Forecast (June 5-9, 2023) DXY, EURUSD, GBPUSD, NZDUSD, XAUUSD

Welcome to This Week’s Forecast: June 9th, 2023

Welcome to this week’s forecast for the week ending June 9th, 2023. My name is Justin Bennett with Daily Price Action, and in today’s forecast, we’re going to discuss the dollar, the Euro, the pound, the New Zealand dollar, and gold. We’ll analyze the current market trends and provide insights into potential trading opportunities. So, let’s dive in!

The US Dollar Index (DXY)

The US Dollar Index, also known as DXY, has been trading within a range for several months. The key level to watch is the yearly open at 103.50. If the DXY holds above this level, we could see a retest of the range highs at 105.60. However, if the yearly open fails, we may see a deeper correction towards 103 or even 102. Currently, the market is range-bound between 103.50 and 104.25, with a bullish bias.

The Euro (EUR/USD)

The Euro has been trading within an equidistant channel, with a potential trend lower in the coming days. If the Euro breaks below the support level at 106, we could see a test of the level around 106 and potentially a bounce from there. However, if the Euro rallies and breaks above the resistance level at 107.60, we could see a move towards 108.30. The key level to watch is the neckline at 123, which, if broken, could lead to a bearish reversal towards 119.

The British Pound (GBP/USD)

The British Pound has formed a potential head and shoulders pattern, with the neckline at 123. If the Pound breaks below this level, we could see a move towards 122 and potentially even 119. However, if the Pound rallies and breaks above the resistance level at 125.30, the bearish reversal scenario is off the table. It’s important to note that this is a speculative pattern, and we need to see confirmation in the coming days.

The New Zealand Dollar (NZD/USD)

The New Zealand Dollar has formed a new range following a breakdown in May. The key support level to watch is 0.6, and if the NZD/USD sustains a break below this level, we could see a move towards 0.5870 or even 0.5760. However, for now, the market is range-bound, and we need to see a break below 0.6 for a potential selling opportunity. If the NZD/USD rallies and breaks above the resistance level at 0.6120, the range-bound scenario continues.

Gold (XAU/USD)

Gold has been holding above a trend line off the November low, but we could see a potential break below the trend line at 1940. If this happens, we could see a move towards 1920 and potentially lower levels. However, if gold rallies and breaks above the resistance level at 1982, we could see a move towards 2000. Currently, gold is in a sideways market, and we need to see a sustained break for a clear trading opportunity.

Frequently Asked Questions

Q: What is the key level to watch for the US Dollar Index?

A: The key level to watch for the US Dollar Index is the yearly open at 103.50. If the DXY holds above this level, we could see a retest of the range highs at 105.60.

Q: What is the potential trading opportunity for the Euro?

A: The Euro has formed an equidistant channel, and if it breaks below the support level at 106, we could see a move towards 106 and potentially a bounce from there. However, if the Euro rallies and breaks above the resistance level at 107.60, we could see a move towards 108.30.

Q: What is the potential pattern for the British Pound?

A: The British Pound has formed a potential head and shoulders pattern, with the neckline at 123. If the Pound breaks below this level, we could see a move towards 122 and potentially even 119. However, confirmation is needed for this pattern.

Q: What is the current range for the New Zealand Dollar?

A: The New Zealand Dollar is currently range-bound between the support level at 0.6 and the resistance level at 0.6120. A break below 0.6 could lead to lower levels, while a break above 0.6120 would continue the range-bound scenario.

Q: What is the potential trading opportunity for Gold?

A: Gold is currently holding above a trend line off the November low, but a break below the trend line at 1940 could lead to a move towards 1920. However, if gold breaks above the resistance level at 1982, we could see a move towards 2000.

That’s it for this week’s forecast. We hope you found it helpful and informative. Remember to trade well and stay updated with the latest market trends. See you next time!