Weekly Technical Forex Forecast 11-15.09.2017
EUR/USD
On Friday, the euro corrected downward, but the movement was on very small volume, so it can not be considered as a reversal of the market. Moreover, if we keep in mind the strong price growth after the ECB press conference on Thursday.
Also it is worth noting the presence of a strong upward trend for the euro, so for this instrument only purchases should be considered.
Nevertheless, now there is no good opportunity for entry, as there is no place for a stop loss. It is necessary to wait for the end of the correction and the resumption of the price growth on increased volume, which will be an excellent bullish signal. A stop loss should be placed at the beginning of a sharp upward movement. The potential of the deal is more than 100 points.
GBP/USD
A strong uptrend continues on the pound. So, on Friday the price showed quite a rapid growth, which, however, was stopped by a new level of resistance, in which increased volume is concentrated. This is the level of 1.3216.
Therefore, we can open purchases only after a sure breakdown of this level. The breakdown movement must be sharp and on large volume – this will be a more accurate signal for the entrance. A stop loss should be placed below the volume breakout bar. The potential of the deal is more than 100 points.
If the price starts a little downward correction, it is worth waiting for it to stop and resume growth at a higher volume, after which you can again consider long positions.
USD/JPY
On Friday, USD/JPY showed a rather sharp correction upward, but it was stopped by a new volume resistance level of 107.86 – 108.06, after which the price began to trade slightly below this level. In addition, the previous resistance level of 108.75 – 108.89 remains relevant.
Also worth noting that for this currency pair is a very strong downtrend, so it’s worth considering exceptionally short positions.
We can open sales after the resumption of a price fall on increased volume. A stop loss should be placed above the fresh resistance level. The potential of the fall is 90-100 points.
If the price breaks the level of 107.86 – 108.06, then the same scenario can be applied to the next resistance. Long positions are not worth considering.
USD/CAD
USD/CAD pair also corrected upwards after the previous rapid price fall. Nevertheless, given that the price growth was smooth and on small volume + there is a strong downward trend, it is necessary to consider only sales.
We can open short positions after the stoppage of the correction and resumption of the price fall on increased volume, which will be an excellent signal for continuing the trend. A stop loss should be placed above the beginning of a sharp downward movement. The potential of the deal is about 120 points.
AUD/USD
Like the other major currency pairs, AUD/USD corrected on Friday. Now the price is trading near the support level of 0.8017 – 0.8028, in which fairly large volume is concentrated. The fall of the price was on small volume, and given the upward trend, it is worth giving preference to long positions.
We can open long positions after the resumption of the price growth or in the case of a support test and a sharp rebound up. In both cases, a stop loss should be placed under the support level. The growth potential is more than 70 points.
XAU/USD
Gold tested the support level of 1340.40 – 1343.20 after which it began trading in a small consolidation just above this mark. The test was on increased volume, so we can open purchases only after a strong bullish signal.
Such a strong signal can be, for example, a price growth on large volume from the support level. A stop loss should be placed below the support. The growth potential is more than 100-110 points.
Sentiment: this indicator confirms all our transactions (trading against the “crowd”), which only strengthens our scenarios.
The bottom line: a lot of interesting scenarios are on the market, so we need to wait for good entry point and open new deals.