Weekly Technical Forex Forecast 02-06.07.2018

EUR/USD

The Euro sharply adjusted up after the test of the support level 1.1517 and the price is in the middle of local consolidation between this mark and the resistance level 1.1827 at the moment. The large volume is concentrated within this range, so the best solution is to wait for the confident exit of the pair from it.

The breakout movement must be swift and supported by the large volume, which will be a more reliable and accurate signal for opening new positions. While the pair is trading within the consolidation, it’s better to stay out of the market.

GBP/USD

The Pound also showed a significant growth on Friday and now the pair is trading in the middle of the local consolidation between the support level of 1.3066 and the resistance level of 1.3291.

Thus, new deals with the Pound can be considered only after a sharp and sure breakout of one of these levels and the exit of the price from the range. The movement should be supported by the large volume, which will be a more accurate signal for entering the market.

USD/JPY

The price continued its growth and tested the resistance level 110.83, but could not break it out. Now the pair is trading near this mark, which allows us to consider the scenario of its breakdown, which will be an excellent bullish signal. The breakdown movement must be sharp and on the large volume, which will insure us against a false breakout and will be a more accurate signal for entering the market. A stop loss should be placed under the breakout volume bar. The potential of the deal is more than 110 points.

USD/CAD

The pair showed a significant drop on the large volume and broke down the previous support level, which is an excellent bearish signal. Thus, it is worth giving preference to sales. Short positions can be opened after a smooth and small correction of the price upwards to get a more profitable entry point. A stop loss should be placed a little above the beginning of a sharp decline. The potential of the deal is about 100 points.

AUD/USD

The Australian dollar adjusted upward on Friday and now the pair is trading in the local range of 0.7331 – 0.7440. The large volume is concentrated in this consolidation, so the best solution will be to wait for a sure exit of the price out of it, which will be an excellent signal for entering the market. The breakdown movement must be on the large scale, which will insure us against a false breakdown.

XAU/USD

Gold also showed an upward correction on Friday, but the movement was smooth and on the small volume. Moreover, there is a strong downtrend, so we still should give preference to short positions with this instrument.

Sales can be opened after the stoppage of the growth and the resumption of the fall of the pair, but the move should be supported by the large volume, which will be a more accurate signal for entering the market. A stop loss should be placed above the beginning of this decline. The potential of the deal is more than 150 points.

The sentiment: this indicator fully confirms our scenarios with the Yen and gold, so these 2 instruments should be in priority. With the Canadian dollar, the situation is opposite, so we should be extremely careful. With other instruments, it is worth giving preference to sales (based on the sentiment), but first we need to wait for prices to come out of consolidations.

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