The new trading week kicks off with a fresh set of opportunities as forex markets brace for volatility from August 3 to August 7, 2026. Our latest weekly forecast highlights the major currency pairs, key support and resistance levels, and the economic events that could drive price action. Whether you're a day trader or a swing trader, here's what to watch in the days ahead.

Major Pairs to Watch

This week, the spotlight falls on the euro, the dollar, and the Japanese yen, with several high-impact data releases scheduled. The EUR/USD pair is likely to remain sensitive to interest rate expectations, while USD/JPY could see sharp moves if risk sentiment shifts. Traders should also keep an eye on GBP/USD, which may react to UK economic indicators.

Technical charts suggest that key levels are forming, with support and resistance zones that could dictate short-term trends. For instance, the euro has been consolidating within a range, and a breakout above or below these boundaries could signal the next directional move. Similarly, the dollar index is hovering near a critical juncture, and any surprise in economic data could trigger a broader rally or pullback.

Key Economic Events

  • Central bank speeches from the Federal Reserve and the European Central Bank
  • US non-farm payrolls and unemployment claims data
  • Eurozone retail sales and PMI readings
  • Japanese trade balance and consumer confidence figures

These events are expected to inject volatility into the market, so traders should plan their entries and exits carefully. The weekly forecast also includes detailed chart analysis for several pairs, offering a visual guide to potential price paths.

Technical Analysis and Levels

For the upcoming week, the forecast identifies several key levels that traders should monitor. For example, EUR/USD is likely to find support around recent lows, while resistance could emerge near previous highs. Similarly, USD/JPY may test important psychological levels, and a break above or below could accelerate trends.

It's important to note that technical patterns are not guarantees, and market conditions can change rapidly. The forecast advises using proper risk management, including stop-loss orders, to protect against unexpected moves. Additionally, traders should consider the broader macroeconomic landscape, including geopolitical risks and commodity price fluctuations, which can influence currency valuations.

How to Use This Forecast

This weekly forecast is designed to help traders make informed decisions. By combining technical analysis with an understanding of upcoming economic events, you can better anticipate market movements. The charts provided in the original article offer a clear visual representation of potential scenarios, making it easier to plan your trading strategy.

Remember, no forecast is foolproof, and it's essential to stay updated with real-time news and data. Use this forecast as a guide, but always adapt to changing market conditions. Whether you prefer scalping or long-term positions, the key is to remain disciplined and patient.

Key Takeaways

In summary, the forex market presents several opportunities from August 3 to 7, 2026. Major economic releases and central bank communications will likely drive volatility, so stay alert. Technical levels offer clear entry and exit points, but always use risk management. For the full detailed charts and analysis, refer to the original forecast from Daily Forex.