Weekly Technical Forex Forecast 15-19.10.2018


EUR/USD

The Euro tested the resistance level of 1.1597, but failed to break it out, after which it sharply corrected downwards. At the moment, the price is trading within the local range between this mark and the support level 1.1505 – 1.1516.

Thus, we can open new deals only after a confident and rapid breakout of one of these levels and the exit of the price from the consolidation. The movement should be supported by the large volume, which will insure us against a false breakout.

GBP/USD

The Pound also corrected downwards after the formation of the new volume resistance level 1.3251. Now the price is between this mark and the previous support level 1.3030. Considering these factors, we can enter the market only after a steady exit of the price from the consolidation.

The breakout movement should be sharp and supported by the large volume, which will be a more accurate and reliable signal for opening new deals, and also insure us against a false breakout.

USD/JPY

The Yen tested the support level 111.90, after which it bounced upwards and continues trading within the local range between this mark and the resistance level 112.76 – 112.89. Thus, we can consider new trading scenarios only after a confident breakout of one of the levels and a sharp exit of the price from the range. Moreover, the movement must be supported by the large volume, which will insure us against a false breakout.

USD/CAD

The Canadian dollar is trading in the small local consolidation near the resistance level 1.3068. Given the presence of a local uptrend and the fact that the price is near this mark, we can consider the scenario of its breakout. This will be a great bullish signal. The movement should be keen and on the large volume, which will be a more accurate signal. A stop loss should be placed under the breakout volume bar. The potential of the deal is more than 100 points.

AUD/USD

The Australian dollar continues trading in the middle of the local consolidation between 2 strong volume levels. They are the support 0.7058 and the resistance 0.7200. Given this fact, we can open new deals only after the rapid exit of the price from the range. Moreover, the breakout movement should be supported by the large volume, which will be a more reliable and strong signal to enter the market.

XAU/USD

Gold gradually adjusted downward after a sharp rise. Given that the upward movement was on the huge volume and the price came out of the consolidation, we should give preference to long positions.

However, purchases can be opened after a small and smooth correction of the price down to get an acceptable entry point into the market. The movement should be on the small volume. A stop loss should be placed slightly below the beginning of a sharp volume growth. The potential of the deal is more than 150 points.

The sentiment: this indicator fully confirms our scenario with the Canadian dollar. As with gold, the situation is ambiguous, nevertheless, given technical factors, we should give preference to purchases. As with all other currency pairs, we can consider new trading scenarios only after a steady exit of prices from consolidations.