Weekly Technical Forex Forecast 28.07.2018

EUR/USD

The situation with the Euro has not changed: the pair is still trading within the local range between the support level 1.1517 and the resistance level 1.1827, in which the large volume is concentrated.

Thus, we can consider new deals only after a confident exit of the price from the local consolidation. The breakout movement must be sharp and supported by the large volume, which will insure us against a false breakdown and will be a more accurate signal for entering the market.

GBP/USD

A similar situation is with the Pound: the price is still inside the local range between 2 strong levels. They are the support 1.2970 and the resistance 1.3345. As can be seen from the volume chart, the large volume is concentrated within this consolidation.

Given these factors, the best solution with the Pound will be to wait for a sharp and rapid exit of the price from the consolidation. The breakdown movement should be supported by the large volume, which will insure us against a false breakout and will be a more reliable signal for entering the market.

USD/JPY

The Yen is also trading within the local range between 2 strong volume levels. They are the support 110.69 and the resistance 111.70 – 111.85. The large volume is concentrated in this consolidation, so new deals should be considered only after a sure breakout of one of the levels and the exit of the pair from it. The breakout movement must be confident and supported by the large volume, which will be a more accurate signal for opening new deals.

USD/CAD

The Canadian dollar is currently trading near the new support level 1.3030. Given the recent sharp drop of the price, we can consider a scenario of a breakdown of this mark, which will allow us to open short positions. The movement should be supported by the large volume, which will insure us against a false breakdown. A stop loss should be placed just above the breakdown volume bar. The potential of the deal is more than 120 points.

AUD/USD

The Australian dollar is in the middle of the local consolidation between the support 0.7318 and the resistance 0.7480. Thus, our previous scenario remains relevant: new positions can be opened only after a sure exit of the price from the range. The breakout movement must be impulsive and supported by the large volume, which will be a more reliable signal for entering the market.

XAU/USD

Gold is also located within the local range just above the support level 1213.00. Given the presence of a strong downtrend and the fact that the price is trading near this mark, we can consider a scenario of its breakdown, which will be an excellent bearish signal.

The move should be swift and supported by the large volume, which will insure us against a false breakdown and 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 more than 150 points.

The sentiment: this indicator fully confirms our scenarios with the Canadian dollar and gold, which is a good additional signal for us. Wth all other currency pairs, we need to wait for a firm exit of prices from consolidations and only after that we can open new deals.

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