Weekly Technical Forex Forecast 23-27.04.2018

EUR/USD

The Euro showed a significant drop and broke down the previous support level, which is an excellent bearish signal. On the other hand, the movement was stopped by the formation of a new support level of 1.2266 – 1.2277, in which the large volume is concentrated.

Nevertheless, given the sharp fall of the pair and the general trend of strengthening the US dollar, we can consider the scenario of a breakdown of this mark, which will be an excellent signal for entering the market. The breakout movement should be supported by the large volume, which will be a more accurate signal for entering the market. A stop loss should be placed just above the breakdown volume bar. The potential of the deal is 90-100 points.

GBP/USD

The Pound continued its decline and is trading near the support level 1.3983 now. Given that the price reduction was sharp and supported by the large volume, we can consider the scenario of a breakdown of this mark, which will be an excellent bearish signal.

The breakdown movement must be rapid and on the large volume, which will be a more reliable signal for entering the market. A stop loss should be placed just above the breakdown volume bar. The potential of the deal is more than 100 points.

USD/JPY

It is necessary to allocate a new level of resistance 107.82 with the Yen, which was formed on Friday and in which the large volume is concentrated. Given the local uptrend and the overall situation on the market, we should give preference to the scenario of a breakout of this mark, which will be an excellent bullish signal.
The movement should be sharp and supported by the large volume, which will be a more reliable signal. A stop loss must be placed under the breakout volume bar. The potential of the deal is more than 100 points.

USD/CAD

USD/CAD demonstrated a rapid growth of the price on the large volume, which is an excellent signal for opening purchases. It is also necessary to allocate a new volume support level of 1.2686 – 1.2704. Thus, all factors indicate that we should give preference to long positions with this pair. Purchases can be opened after a small price correction down to get a more profitable entry point. A stop loss must be placed below the support level. The potential of the deal is 80-90 points.

AUD/USD

The Australian dollar showed a significant price drop at the end of last week, moreover, the movement was on the large volume, which only strengthens its value. Now the pair is trading near the support level of 0.7650, so short positions can be opened only after a sure and sharp breakdown of this mark. A stop loss should be placed just above the breakdown bar. The potential of the deal is 100-110 points.

XAU/USD

Gold also showed a significant decline on the large volume on Friday and is testing the local support level of 1335.40 at the moment. Given such a sharp drop and the absence of any significant price reaction to this level, it is worth considering the scenario of its breakdown, which will be a good bearish signal.

The breakout movement must be strong and confident, and also supported by the large volume, which will be a more accurate signal for entering the market. A stop loss should be placed just above the breakdown volume bar. The potential of the deal is about 110 points.

The sentiment: this indicator confirms all our scenarios, except with the Yen and gold. With USD/JPY, the situation is 50/50, while with gold the majority of traders are in sales, which should be a bullish signal for us. Nevertheless, considering all technical factors and the general situation on the market, it is worth considering only sales.

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