Weekly Technical Forex Forecast 08-12.10.2018

EUR/USD

Euro adjusted upwards on Friday. The movement was sharp and on the large volume; nevertheless, the growth was stopped by the formation of the new resistance level 1.1525 – 1.1539. The large volume is concentrated within this mark + the price is trading near it, we can consider 2 trading scenarios.

1. A test of this level and a sharp rebound of the price down on the large volume, which will be an excellent bearish signal. A stop loss should be placed slightly above the resistance level. The potential of the deal is about 100 points.
2. A sharp rise and the breakout of the level of resistance on the large volume, which will allow opening long positions. A stop loss should be placed under the breakout volume bar. The potential of the deal is about 100-110 points.

GBP/USD

The Pound also rose and broke out the previous resistance level on Friday. It is also worth highlighting the new volume support level 1.3069. Now the price is within the local range between this mark and the resistance level 1.3188.

Given these factors, we can consider new deals only after a confident and rapid exit of the pair from the consolidation. The breakout movement should be supported by the large volume that will insure us against a false breakout and will be a more accurate signal to enter the market.

USD/JPY

The Yen showed a significant decline and is testing the support level 113.64 – 113.77, in which the large volume is concentrated. Now the price is trading inside this mark, so we can consider 2 trading scenarios:

1. A test of this level and a sharp rebound of the price up. In this case, we can consider long positions. A stop loss should be placed slightly below the support. The potential of the deal is more than 100 points.
2. A continuation of the fall and sharp breakdown of the support level on the large volume, which will be a strong bearish signal. A stop loss should be placed slightly above the breakout volume bar. The potential of the deal is 80-90 points.

USD/CAD

The Canadian dollar continues trading within the local range between the support level 1.2790 and the resistance level 1.3012. Thus, we can consider new deals only after a confident and rapid exit of the price from the consolidation. The breakout movement should be supported by the large volume that will insure us against a false breakout and will be a more accurate signal to enter the market.

AUD/USD

The Australian dollar went on its decline, moreover, the movement was on the large volume. It is also necessary to allocate a new resistance level 0.7084. Considering all these factors, we should consider extremely short positions. Sales can be opened after a small price correction upwards to get a better entry point. A stop loss should be placed slightly above the resistance level. The potential of the deal is more than 100 points.

XAU/USD

The situation with gold has not changed, the price is still within the local range between 2 strong volume levels. They are the support 1182.40 and the resistance 1210.00. Also, the large volume is concentrated within this consolidation.

Thus, we can consider new trading scenarios only after a confident and abrupt exit of the price from the consolidation. The breakout movement must be supported by the large volume, which will be a more accurate and reliable signal to enter the market.

The sentiment: this indicator confirms our scenario with the Australian dollar. With the Euro and gold, we need to give preference to sales. With all other instruments, on the contrary, long positions. However, we should first wait for the appearance of additional confirmation signals.