Weekly Technical Forex Forecast 03-07.09.2018
EUR/USD
The Euro was unable to continue its growth and showed a significant drop on the large volume, after which the previous level of support was broken down. It is also necessary to allocate a new volume resistance level 1.1628 – 1.1648. Given these factors, we should give preference to sales.
Short positions can be opened after a small correction of the price upwards to get a more advantageous entry point. A stop loss should be placed a little above the new resistance level. The potential of the deal is about 120 points.
If the price breaks down the resistance level, it will be a signal for switching to purchases.
GBP/USD
The Pound also fell down sharply on Friday and is now testing the support level 1.2945. Thus, we can identify 2 possible trading scenarios.
1. A test of the level and a sharp rebound of the price up on the large volume, which will be an excellent bullish signal. A stop loss should be placed a little below the support level. The potential of the deal is about 120-130 points.
2. A continuation of the fall and a confident breakdown of the level of support on the large volume, which will allow us to open sales. A stop loss should be placed just above the breakdown volume bar. The potential of the deal is 90-100 points.
USD/JPY
The Yen is also located within the local range between the support level 109.82 and the resistance level 111.94. Thus, our previous scenario remains relevant: new positions can only be opened after a confident and sharp exit of the pair from the consolidation. The movement should be supported by the large volume, which will insure us against a false breakdown.
USD/CAD
The situation is similar with the Canadian dollar, as the pair is trading in the middle of the local consolidation between 2 strong levels. They are the support 1.2895 and the resistance 1.3165. Given this fact, we can open new deals only after a breakout of one of these levels and a sure exit of the price from the range. The breakout movement must be swift and supported by the large volume, which will be a more accurate and reliable signal for entering the market.
AUD/USD
The Australian dollar showed a sharp and rapid decline on the large volume and broke down the previous level of support, which is an excellent bearish signal. Sales can be opened after a small and smooth correction of the price upwards to get a more profitable entry point to the market. A stop loss should be placed slightly higher than the beginning of the breakout movement on Friday. The potential of the deal is about 100 points.
XAU/USD
The situation with gold has not changed, as the price is still trading within the local range between the support level 1196.40 and the resistance level 1215.70. Thus, we can consider new trading scenarios only after the confident exit of the instrument from the consolidation.
The breakout movement must be swift and sharp, and also supported by the large volume, which will insure us against a false breakout and will be a more accurate and strong signal for opening a new position with gold.
The sentiment: this indicator fully confirms our scenario with the Australian dollar, which is an excellent additional signal. The situation with the Euro is 50/50, so we should wait for an additional signal. New deals with other instruments can be opened only after the confident exit of prices from local ranges.
