Weekly Technical Forex Forecast 07-11.05.2018


EUR/USD

We should point out the new level of support with the Euro. It is 1.1916, which was formed on Friday. The very large volume is concentrated in this level. Nevertheless, given the strong downtrend, we still should give preference to short positions.

volume euro eng
Sales can be opened only after the resumption of a sharp fall and a sure breakdown of a new level of support. A stop loss should be placed just above the breakout bar. The potential of the deal is more than 100 points.
If the price continues growing, it is better to stay out of the market.

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GBP/USD

The Pound showed a significant drop on the large volume on Friday, which is an excellent signal for the continuation of a downtrend with this instrument. It is also necessary to allocate a new level of support 1.3497, in which the large volume is also concentrated.

volume gbp eng
Thus, short positions can be opened only after a sharp and rapid breakdown of this mark, which will be an excellent bearish signal. A stop loss should be placed just above the breakout bar. The potential of the deal is more than 120 points.

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USD/JPY

A new strong volume support level was formed with the Yen. It is 108.65 – 108.81. Now the price is trading inside the local consolidation between this mark and the resistance level of 109.97. The large volume is concentrated in this range, so the best decision will be to wait for the pair to exit confidently out of the consolidation. The breakout movement must be on the large volume, which will be a more accurate signal for entering the market.
While the pair is within the range, it is better to stay out of the market.

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USD/CAD

The situation with the Canadian dollar has not changed, and the price is still within the consolidation of 1.2819 – 1.2892, in which the very large volume is concentrated. Therefore, the best solution is just to wait for a confident and rapid release of a pair from this range. Movement should be supported by the large volume, which will be a more reliable signal for entering the market.

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AUD/USD

The Australian dollar is also inside the local consolidation of 0.7475 – 0.7589. The significant volume is concentrated in this , so new positions can be opened only after a breakdown of one of the consolidation boundaries on the large volume. This will be an excellent signal for entering the market.
While the price is trading within the range, it’s better to be out of the market.

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XAU/USD

Gold continued its smooth growth, with the movement was on the large volume. However, the price is closed in the local consolidation between the two strong levels now. They are the support of 1302.20 and the resistance of 1326.00. It is also worth noting that the large volume is concentrated in this range.

volume gold eng
Thus, the best scenario with gold is just to wait for a sure and strong breakdown of one of the levels and the exit of the price from the range. The movement should be supported by the large volume, which will insure us against a false breakdown.

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The sentiment: this indicator confirms our scenarios with the Euro and Pound, so these tools should be in priority today. With other instruments, the market sentiment is not very indicative, since the instruments are in consolidations now. Therefore, we should consider new deals only after prices come out of the ranges.

sentiment