Weekly Technical Forex Forecast 17-21.09.2018

EUR/USD

The Euro showed a very sharp and rapid decline on Friday, which completely absorbed the previous growth of the price. Moreover, the movement was on the increased volume, so we cannot open long positions at the moment.

It is also worth noting that the pair is trading within the local range between the support level 1.1533 and the resistance level 1.1718. Thus, we can consider new trading scenarios only after the sharp exit of the pair from the consolidation. The breakout should be supported by the large volume, which will be a more accurate signal for entering the market.

GBP/USD

The Pound also adjusted downward on the increased volume on Friday. It is also necessary to allocate a new resistance level/local maximum 1.3123. Nevertheless, given the local uptrend and the fact that the price is near this mark, we can consider a scenario of a breakout of the resistance, which will be an excellent bullish signal.

The breakout movement must be confident and sharp, and also supported by the large volume, which will insure us against a false breakout. A stop loss should be placed just below the breakout volume bar. The potential of the deal is 130-140 points.

USD/JPY

The Yen continued its growth and is now testing the new resistance level 112.10. The upward movement was on the increased volume, so we can consider a scenario of a breakout of this mark, which will allow us to open long positions. The rise of the pair must be rapid and on the large volume. A stop loss must be placed under the breakout volume bar. The potential of the deal is about 100 points.

USD/CAD

The Canadian dollar corrected upwards, but the movement was on the small volume. Now the price is trading near the support/lower limit of the local consolidation 1.2987, which allows us to consider a scenario of the breakdown of this mark. This will be an excellent bearish signal. The breakdown movement must be confident and on 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 90 points.

AUD/USD

The Australian dollar fell sharply on the increased volume on Friday and is now inside the local range between 2 strong volume levels. They are the support 0.7100 and the resistance 0.7230. Given this fact, we can consider new positions only after the keen exit of the price from the consolidation. The movement should be supported by the large volume, which will insure us against a false breakout.

XAU/USD

Gold is trading in the local consolidation between the support 1188.20 and the resistance 1215.70, in which the large volume is concentrated. Nevertheless, the price showed a significant drop on the large volume and is now near the lower limit of the range, so we can consider a scenario of the breakdown of this level, which will be an excellent bearish signal.

The breakdown movement must be confident, swift and on the large volume, which will be a more accurate and reliable 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 deals with the Yen, the Canadian dollar and gold, which is a good additional signal. The situation with the Pound is ambiguous, so it’s worth to be extremely accurate. With the Euro and the Australian dollar, we need to wait for a confident exit of prices from local consolidations.

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