Weekly Forex Forecast 2nd October 2022

Hi Traders! Weekly Forex Forecast 2nd October 2022 is here. In this post, I analyze and forecast EURAUD and EURCAD. This will be a follow up to the Weekly Forex Forecast video which I shared with you on 18th September 2022( you can watch it here).

EURAUD is expected to continue its current corrective move upside, and I expect it to rally further after a small pullback. I believe the rally should continue until it reaches the next key weekly levels. EURCAD waves also suggest a further bullish run, and I believe there is more to go here as well until we reach the weekly supply zone and the falling resistance line. A detailed analysis of these two instruments are as follows:

You can watch the video explanation of this forecast here:

 

 

EURCAD

D1 – In this pair, two weeks ago I wanted to see pullback and further continuation to the upside and the price moved exactly as per the plan and has delivered around 500 pips move!

 

 

We can clearly see a massive resistance zone formed by the previous highs, falling resistance line and 200 moving averages coming into play as shown in the image below. This is exactly where I believe the price is heading towards. I do suspect that we might see some slow down around this area.

 

 

H4 – In my POV, I see the price which is moving higher has created a first leg (of the daily chart) to the upside followed by a correction and currently it looks like the price is building up the final leg.

 

 

The reason I think so is because on the first daily leg we can see two waves to the upside which ended up with bearish divergence based on the moving averages of the MACD indicator. It is then followed by two legs to the downside with the price creating a bullish hidden divergence which we may consider as evidence for bullish continuation, this gave an amazing trigger to buy. Right now I believe the price should complete the final leg.

 

 

Unless the market gives us any surprises, I believe the price might build something like as shown in the image below.

 

 

H1 – On the H1 chart, currently it looks like the price is building up three waves to the upside which I believe might be followed by a correction and then further continuation to the upside.

 

 

So my plan here is to buy the dips heading towards the daily resistance zone shown in the image below.

 

 

If the price manages to go above the daily resistance level then the next levels to watch out for are the two weekly downtrend lines shown in the image below.

 

 

 

EURAUD

W1 – On the weekly chart, the price which was moving lower ended up with a false breakout and bullish divergence. If the price manages to break above the last high and creates a bullish convergence then in the long term I would be looking to buy the dips here.

 

 

The key levels to watch out for are the ones shown in the image below.

 

 

D1 – On the daily chart, very likely I expect the price to break above the weekly high shown in the image below and complete some over bought condition with MACD indicator making a new high and the RSI indicator going right above the 80 level to put the pressure on the key levels from the sellers. Generally, around such levels, they start to resist but it doesn’t mean if a level is touched a pullback is due immediately because sometimes it takes time for the market to build this scenario or at times it goes to the next level directly. So have these levels in mind and wait for rejection.

 

 

H4 – So if we get the pullbacks then I expect them to allow the final rally to happen. Very likely we may start to see slow down, while the daily goes extreme, the H4 will start to create the bearish divergence (the bearish divergence might start with the H1 and then to the H4 chart). Based on all this my plan here is to buy the dips.

 

 

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