Weekly Forex Forecast Summary 4th September 2022

Hi Traders!, Weekly Forex Forecast Summary 4th September 2022 is here. In this post, I analyze and forecast EURGBP and GOLD. EURGBP is expected to continue its current bullish phase and complete the second bullish leg on the weekly time frame. GOLD is expected to continue the bearish trend following the clear bearish trend structure on the daily and weekly time frames. A detailed analysis of these two instruments are as follows:

You can watch the video explanation of this forecast here:

EURGBP

W1 – On the weekly chart, after the previous downtrend in the form of three waves to the downside, currently it looks like this pair is under recovery in the form of two waves to the upside.
The interesting part here is that the price has managed to break above the previous highs. So basically, we have the first leg to the upside followed by a pullback and very likely I expect the price to complete the second leg of this correction.

 

D1 – After the beautiful bullish trending structure, we had a correction, the price then moved higher and has broken above the last high. So, this makes me think that with a pullback we may expect further continuation to the upside.

 

H4 – On the H4 chart we have a massive rally without any specific signs that it is about to end.

We do have the ride on the upper Bollinger band without any retrace to the lower band. We also have a bearish divergence based on the moving averages of the MACD and RSI indicator.. Usually in such cases, it brings some pressure for the price to retrace down to the lower band and after that we may expect the price to start and build some conditions for further bullish continuation. Also, we should note that this pullback happens from a very important resistance zone.

The important levels to pay attention to in the next rally is the previous swing high on the daily chart, shown in the image below.

And, the critical zone on the weekly chart shown in the image below.

 

 

Gold

W1 – On the weekly chart, currently we have an on going bearish momentum after a pretty strong bounce from the previous resistance.
There are no ending signs and the price is moving in a pretty clear bearish structure and I believe there is more to come.

 

D1 – On the daily chart, we can clearly see that the price created lower highs, lower lows (bearish trend structure) and we have a massive resistance zone (based on the previous swing high and the volumes area) as shown in the image below. The indicators also point lower highs, lower lows and currently there are no ending signs, which makes me think that the price might go lower further.

With any pullback and bearish signs I expect the price to continue lower further mostly likely.

 

H4 – The important zones to watch out for on the H4 chart are the ones shown in the image below. As long as these areas hold, sell the rallies is my plan here.