The previous trading week was dominated by the Federal Reserve interest rate decision. Although the Fed neither raised nor cut interest rates, its relatively hawkish tone failed to trigger a sustained U.S. dollar rally.

Instead, the market reacted with broad dollar weakness.

Why?

The reason was simple. Prior to the announcement, traders had priced in the possibility of a more aggressive Federal Reserve stance, including clearer guidance toward another rate hike later this year. When that guidance failed to materialize, expectations shifted rapidly, encouraging traders to reduce long-dollar exposure.

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While the macroeconomic environment remains uncertain—particularly with ongoing geopolitical tensions and their potential impact on inflation and commodity prices—the technical picture continues to provide excellent trading opportunities.

Let’s examine the charts.

EUR/USD Forecast – Looking for Selling Opportunities at Higher Prices

The bearish scenario discussed last week did not develop as expected.

Instead of completing the anticipated decline, EUR/USD formed the alternative ABCD corrective structure that had been discussed as the lower-probability scenario.

Although the short-term picture has become more bullish, the broader outlook remains cautious.

Higher Timeframe Perspective

The longer-term structure still does not suggest a sustainable bullish trend.

Instead, the current rally appears corrective within a larger bearish framework.

Several major resistance zones now stand ahead of price.

These include:

• Previous swing highs
• Daily supply zones

• Volume Profile balance areas
• Historical resistance clusters

As long as these areas continue to hold, they may provide attractive selling opportunities.

What Will I Watch?

Rather than selling blindly into resistance, I prefer waiting for confirmation.

The ideal scenario would include:

• Bearish divergence on MACD
• RSI divergence confirming weakening momentum
• Reversal price action on the H4 or H1 charts
• Failure to maintain higher highs

These signals would significantly increase the probability of a successful short position.

Could EUR/USD Still Rise?

Yes.

Short-term buying opportunities remain possible while price holds above the current demand zone.

Important support includes:

• Previous lows
• Broken resistance acting as support
• Daily demand between approximately 1.1485 and 1.1380

As long as buyers defend this area, EUR/USD could continue toward higher resistance before offering another high-probability selling opportunity.

Trading Bias: Short-term bullish correction, medium-term bearish.

GBP/USD Forecast – Bullish Momentum Continues

Last week’s analysis highlighted an important resistance zone that successfully produced the expected decline.

Although price did not fall quite as deeply as anticipated, buyers quickly regained control after bullish divergence appeared on the four-hour chart.

That changes the short-term structure considerably.

Higher Highs and Higher Lows

GBP/USD has now established:

• Higher highs
• Higher lows
• Bullish divergence
• Improving market structure

This suggests buyers currently have the advantage.

Key Trading Plan

As long as recent swing lows remain intact, buying pullbacks continues to offer the highest-probability setup.

The longer-term objective remains unchanged.

The market still appears capable of challenging—and potentially breaking—the 1.4000 region.

Several resistance zones remain overhead, but current momentum favors additional upside before any larger correction develops.

Trading Bias: Buy the dips while current support holds.

GBP/JPY Forecast – Strong Bearish Signals Continue Building

GBP/JPY remains one of the most technically interesting markets this week.

Several weeks ago, two scenarios were discussed:

Scenario One

A break below support would trigger selling opportunities.

This never occurred.

Scenario Two

Price would create one final higher high, complete bearish divergence, and then reverse.

This is exactly what the market delivered.

Multiple Timeframe Confirmation

The bearish outlook is supported across several timeframes.

Monthly Chart

• Developing bearish divergence
• Major historical supply zone

Weekly Chart

• Bearish divergence
• Evening Star candlestick pattern
• Strong rejection from resistance

Daily Chart

• Break of the latest rising trendline
• Increasing downside momentum

When several higher timeframes align simultaneously, probabilities generally improve.

Trading Strategy

Rather than chasing price lower, patience remains essential.

The preferred approach is waiting for pullbacks into:

• Broken resistance
• Supply zones
• Dynamic trendline resistance

If sellers defend these areas, further downside becomes increasingly likely.

Trading Bias: Sell rallies.

Gold (XAU/USD) Forecast – Bearish Pressure Remains

Gold spent much of last week consolidating rather than producing the expected bearish continuation.

That does not invalidate the outlook.

Instead, it delays it.

Primary Scenario

If price breaks below current support, the anticipated final decline may finally begin.

However, traders should remain flexible.

Alternative Scenario

A brief liquidity sweep below recent lows could trigger:

• Bullish divergence
• False breakout
• Strong reversal toward higher prices

This remains an important possibility.

Key Support Levels

The first area to monitor is the recent daily low.

Should buyers fail there, the next major weekly support becomes the critical level.

That broader weekly demand zone could become the foundation for the next significant bullish move after the expected correction completes.

Until that occurs, bearish pressure continues to dominate the short-term outlook.

Trading Bias: Bearish in the short term, preparing for a larger bullish reversal once the final decline completes.

Weekly Trading Summary

EUR/USD

• Short-term bullish correction
• Watch higher resistance for bearish divergence
• Prefer selling after confirmation

GBP/USD

• Bullish divergence supports buyers
• Buy pullbacks while recent lows hold
• Long-term target remains above 1.4000

GBP/JPY

• Strong bearish confluence across monthly, weekly and daily charts
• Sell rallies into resistance
• Trend favors further downside

Gold (XAU/USD)

• Bearish pressure remains
• Monitor current support for breakdown
• Larger bullish opportunity may emerge after the final corrective decline