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Welcome to this week’s Market Forecast, covering key trading opportunities from February 3rd onwards.
Last week, major announcements from global central banks shaped market sentiment, with the Bank of England preparing for a high-impact interest rate decision this week and the Non-Farm Payrolls (NFP) report set to shake up the US markets.
However, this morning’s market open revealed something critical…
Gold, Bitcoin, and the entire market opened lower after the weekend, confirming key technical signals that we identified in advance.
This is a prime example of how technical analysis allows us to anticipate market movements before they happen.
Prior to the market open, we analysed the charts and spotted potential bearish shifts forming on multiple assets.
Now that the market has reacted exactly as expected, the question is…what’s next, and how do we trade it?
BTC/USD (Bitcoin):
Bitcoin opened the week lower, following the same technical signals we discussed in last week’s analysis. While the long-term trend remains bullish, momentum had already started fading on the daily and 4-hour charts, signaling a potential pullback. Now that we’ve seen that dip, the key level to watch is $91,650 - $92,000. If Bitcoin holds above this zone, it could set up for the next big rally. However, a breakdown below this level would open the door for deeper corrections toward $86,800 and $71,172.
Click here to find out how to trade it.
CHF/JPY
Moving to CHF/JPY, the pair has turned bearish following a strong bearish divergence on the weekly timeframe. Price action is forming lower highs, indicating that buyers are losing momentum. The 4-hour chart confirms this trend with a well-defined bearish structure of lower highs and lower lows. Key support levels to watch include 159.00 and 157.20, while resistance remains at 162.5. If price rallies towards 160.80 - 161.50, traders should look for shorting opportunities, placing stop losses above 162.50. A downside break below 159.00 could accelerate the decline further.
Crude Oil
Crude oil recently completed a pullback after reaching a major resistance area. Although a correction was expected, bullish divergence on lower time frames suggests that buyers are stepping back in at key levels. The $71.90 zone, which aligns with a 61.8% Fibonacci retracement level, has acted as a strong support area. If this level holds, crude oil could stage a rally toward $75, $80, and eventually $85. However, if sellers manage to push price below $69.50, it would invalidate the bullish scenario and shift the bias back to bearish. Buying dips near $72.50 - $71.90 while targeting $80 - $85 appears to be a favourable strategy for the week ahead.
NZD/CAD
Looking at NZD/CAD, the weekly support level around 0.8164 remains intact, with a clear bullish divergence on MACD. This suggests that the pair could be setting up for a bullish continuation. A recent breakout above a falling trendline resistance further confirms this possibility. The next upside targets lie at 0.8342, 0.84, and 0.85. However, the daily chart indicates that momentum is slowing, and lower time frames suggest a possible short-term pullback. Instead of entering at the current price, a better approach would be to buy on dips around 0.8164 - 0.8180, with a stop loss below 0.8100. As long as price remains above support, the bullish bias remains valid.
XAU/USD (Gold):
Gold opened lower this morning, perfectly aligning with the bearish divergence that had formed on the lower timeframes. Now, the market is testing key support zones around $2792 - $2760, exactly where we anticipated a potential dip before the next move higher. The question is—will buyers step in here, or is a deeper retracement coming before gold resumes its rally toward $2835 - $2885?
Click now to stay ahead.
The fact that today’s market drop was entirely predictable highlights the power of proper analysis.
The key now is to capitalize on the setups that are unfolding right in front of us.
With the Bank of England’s rate decision and NFP ahead, this week is set to be highly volatile…meaning the best opportunities are just getting started.
Wishing you all a profitable trading week ahead!
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