The EURUSD pair has been declining in 2019 and appears to have bottomed at 1.0878. The pair is likely to continue moving upwards in 2020 for four reasons.

  1. There are signs that the European economy has bottomed as evidenced by recent PMI data. Second, the Fed has signalled that it won’t hike rates in 2020.
  2. The dovish statement could push the USD lower.
  3. The win by Boris Johnson could normalize relations between the European Union and the United Kingdom.
  4. Finally, the US election could weigh on the US dollar. Therefore, the pair could reach 1.1300 by June 2020 and 1.1400 by December 2020. 


The GBP/USD pair rose sharply as Boris Johnson’s party won a commanding lead. The pair has been declining since 2015 when it reached a high of 1.7223. There are three reasons why the pair could continue to soar in 2020.

  1. The US election and the Fed commitment to maintaining interest rates could weigh on the US dollar.
  2. Boris Johnson’s win could bring back investors and corporate confidence to the UK.
  3. After pausing on rate hikes, the BoE could implement one or two hikes in 2020. This will likely push the GBP/USD higher. This is also the 50% Fibonacci Retracement level on the weekly chart. It could reach the 61.8% Fibonacci level of 1.5000 by December.


The USD/JPY pair has been forming a descending triangle pattern on the weekly chart. The support of this pattern has been the 104.40. In 2020, there will be several things to watch.

  1. Japan and South Korea could attempt to iron out their trade conflict.
  2. The North Korea crisis could escalate. This is often a bullish factor for the yen.
  3. A trade deal between the US and China will be a good thing for Japan. This is because Japan is an export-oriented country.
  4. The BOJ could signal that it may abandon negative rates in 2021.
  5. In June, there is a likelihood that the pair will test the important resistance level of 112, which is also the 50% Fibonacci Retracement level.


The XAU/USD pair has been on an upward trend since October 2015, where it had reached a low of 1046. The pair hit a high of 1556 in 2019. In 2020, the pair will be affected by several factors.

  1. The dovish Federal Reserve could lead to a weaker dollar and a higher gold price.
  2. The uncertainties of the upcoming US election could see the gold price move higher.
  3. Weak corporate earnings from the US could raise the likelihood of a corporate recession. This tends to be positive for gold price.

    On the other hand, a trade deal between the US and China would be negative for gold. The potential scenario is where the XAU/USD pair retests the 38.2% Fibonacci Retracement level of 1360 by June. It could then end the year at 1500.

We have a lot to look out for this year, but we hope it’s going to be both eventful and fruitful for the trading.

Prepare your strategies and economic calendars!