Weekly Technical Forex Forecast 20-24.08.2018


EUR/USD

The Euro continued its correction upward, but the growth was on the small volume. Moreover, the price is still inside the local range between the support level 1.1303 and the resistance level 1.1478. Given these factors, we can consider new deals only after a sharp exit of the price from the consolidation.

volume euro eng

The breakout movement must 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. While the pair is trading within the range, it’s better to stay out of the market.

trade euro eng

GBP/USD

The Pound is inside the small consolidation near the local minimum. Nevertheless, we still should give preference to short positions, as there is a strong downtrend with this currency pair.

volume gbp eng

Sales can be opened after the resumption of a sharp drop of the price. The movement should be supported by the large volume, which will be a more reliable signal for entering the market. A stop loss should be placed slightly above the beginning of this decline. The potential of the deal is more than 120 points.

sell gbp eng

USD/JPY

The Yen resumed its decline, but the price is still trading within the local range between the support level 110.17 and the resistance level 111.94. Thus, we can consider new positions only after a confident and sharp breakout of one of these levels and the exit of the price from the consolidation. The movement must be supported by the large volume, which will insure against a false breakdown.

trade jpy eng

USD/CAD

The Canadian dollar showed a significant drop on the large volume on Friday and now the price is within the middle of the local consolidation between two strong levels. They are the support 1.2980 and the resistance 1.3165. Thus, we can open new positions only after a confident and prompt exit of the price from the range. The breakout movement should be supported by the large volume, which will be a more accurate signal for entering the market.

trade cad eng

AUD/USD

The Australian dollar continued its upward correction, but the movement was on the small volume, so we cannot allocate new levels or zones. Moreover, the pair is inside the local range between the support 0.7211 and the resistance 0.7439. Given these factors, we can consider new trading scenarios only after a sharp exit of the price from the consolidation. The breakout movement must be confident and supported by the large volume, which will be a more reliable signal for entering the market.

trade aud eng

XAU/USD

Gold also adjusted upwards, but the movement was on the small volume, so we cannot consider long positions. It is also necessary to note the presence of a strong downtrend with this instrument, so we still should give preference to sales.

volume gold eng

Short positions can be opened after a stoppage of the growth and a resumption of a rapid decline on the large volume, which will be a more accurate and strong signal for entering the market. A stop loss should be placed slightly above the beginning of this movement. The potential of the deal is more than 150 points.

sell gold eng

The sentiment: this indicator fully confirms our scenarios with the Pound and gold, which is a good additional signal for us. With other instruments, we need to wait for a sure exit of prices from ranges and only after that we can open new positions.

sentiment