Weekly Technical Forex Forecast 21-25.05.2018

EUR/USD

The Euro continued its decline and broke down the previous support level, which is an excellent bearish signal. Nevertheless, further fall of the price was stopped after the formation of the new support level 1.1755, that contains increased volume.

Thus, sales can be opened after a sure breakdown of the support level on the increased volume. A stop loss should be placed just above the breakout bar. The potential of the deal is more than 120 points.

GBP/USD

The Pound continued its drop and is trading near the support/lower limit of the local consolidation of 1.3470 at the moment. Thus, we can consider the scenario of the breakdown of this mark, which will be an excellent signal for opening short positions.

The breakdown movement must be confident and rapid, and also supported by the increased volume, which will be a more accurate and strong signal for entering the market. A stop loss should be placed just above the breakdown bar. The potential of the deal is more than 150 points.

USD/JPY

It is necessary to allocate a new resistance level of 111.00, which stopped the growth with USD/JPY. Nevertheless, given the strong local uptrend, we still should give preference to long positions with the Yen. Purchases can be opened after the resumption of the growth and a sure breakdown of the new level of resistance. A stop loss should be placed just below the breakdown bar. The potential of the deal is more than 100 points.

USD/CAD

The price showed a significant increase on Friday, but is still trading inside the local consolidation 1.2750 – 1.2985. The large volume is concentrated in the range, so the best solution with the Canadian dollar will be to wait for a confident exit from the consolidation. The breakout movement must be sharp and supported by the large volume, which will be a more accurate signal for entering the market.

AUD/USD

The Australian dollar is also in the local consolidation of 0.7424 – 0.7581 at the moment, in which the large volume is concentrated. Thus, our previous scenario remains actual: new positions can be opened only after a sharp exit of the price from the consolidation. The movement should be supported by the large volume that will insure us from a false breakdown and will be a more accurate signal for entering the market.

XAU/USD

After the formation of a new support level of 1287.30 and several of its tests, gold corrected upwards and is trading between this mark and the resistance of 1301.60 – 1303.50 now. Nevertheless, given the sharp fall of the price on the very large volume last week, it is still better for us to give preference to short positions.

Sales can be opened after the resumption and a sharp breakdown of the level of support. The movement should be supported by increased volume, which will be a more reliable signal for entering the market. A stop loss should be placed just above the breakout bar. The potential of the deal is more than 150 points.

The sentiment: this indicator confirms all our trading scenarios, which is an excellent additional signal. With the Canadian dollar, we should give preference to purchases, while with the Australian – sales. Nevertheless, we must wait for the exit of these pairs from the consolidations.

Hits: 3