Weekly Technical Forex Forecast 13-17.08.2018


EUR/USD

The Euro showed a significant drop and broke down the previous support level on Friday. Moreover, the downward movement was supported by the large volume, which only strengthens its importance. Thus, now it is worth giving preference to sales.

volume euro eng

Short positions can be opened after a small and smooth correction of the price upwards to get a more profitable entry point. A stop loss should be placed slightly higher than the beginning of a sharp decline on Friday. The potential of the deal is more than 100 points.

sell euro eng

GBP/USD

The Pound also fell sharply on Friday, but further decline was stopped by the new support level 1.2738, in which the increased volume is concentrated. Nevertheless, given the strong downtrend with this instrument, we still need to give preference to short positions.

volume gbp eng

Sales can be opened after a confident and sharp breakdown of the new level of support. The move should be supported by the large volume that 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 120 points.

sell gbp eng

USD/JPY

The Yen again tested the support level/lower limit of the local range, but could not break it. On the other hand, the pair grew up on the small volume and is now still trading near this mark, so we can consider the scenario of its final breakdown, which will be an excellent bearish signal.
The breakdown movement must be sharp and 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 about 120-130 points.

sell jpy eng

USD/CAD

The Canadian dollar showed a rapid growth on the large volume and broke out the previous resistance level, which is a strong bullish signal. Thus, we should consider long positions.
Purchases can be opened after a small price correction down to get a more profitable entry point. A stop loss should be placed under the new support level of 1.3071. The potential of the deal is more than 100 points.

buy cad eng

AUD/USD

The Australian dollar fell sharply and broke down the previous support level/lower limit of the local range. The movement was on the large volume, which is a strong bearish signal. Therefore at the moment we should give preference to short positions.
Sales can be opened after a small correction of the price up, to get a more advantageous entry point. A stop loss should be placed slightly higher than the beginning of a sharp drop of the pair on Friday. The potential of the deal is more than 100 points.

sell aud eng

XAU/USD

The situation with gold has not changed, as the price continues trading within the local range between the support 1204.80 and the resistance 1226.60. The large volume is concentrated within this resistance, so we can open new deals only after the exit of the price from it.

volume gold eng

The breakdown movement must be rapid and confident, and also supported by the large volume, which will be a more accurate and reliable signal for entering the market. While the price is trading within the range, it is better to stay out of the market.

trade gold eng

The sentiment: the mood of the market fully confirms our scenarios with the Euro, Pound, Canadian and Australian dollars, which is an excellent additional signal. As with the Yen, the situation is 50/50, so we should wait for a strong confirmation signal.

sentiment