Weekly Technical Forex Forecast 22-26.10.2018


EUR/USD

After the formation of the new strong support level 1.1433, the Euro showed a significant growth of the price on Friday. At the moment, the pair is trading inside the local consolidation between this mark and the resistance level 1.1615.

Thus, we can consider new positions only after a confident and abrupt breakout of one of these levels and the exit of the price from the range. The breakout movement should be supported by the large volume, which will be a more reliable signal to enter the market.

GBP/USD

The Pound also rose sharply and tested the previous resistance level 1.3086, but could not break it out. After which the price corrected down. Thus, before the breakdown of this mark, we should give preference to short positions.

Sales can be opened after the resumption of a sharp decline of the pair (preferably on the increased volume). A stop loss should be placed just above the test of the resistance level . The potential of the deal is about 120 points.

USD/JPY

The situation with this instrument has not changed, as the Yen continues trading within the local range between 2 strong levels. They are the the support level 111.74 and the resistance level 112.76 – 112.89. Therefore, we can open new deals only after a confident and rapid exit of the price from the consolidation. The movement should be supported by the large volume, which will be a more accurate signal to enter the market.

USD/CAD

The Canadian dollar showed a sharp rise on the large volume. Also it is worth highlighting the new resistance level 1.3121. Given the presence of a strong local uptrend and the fact that the pair is trading near this mark, we can consider a scenario of its breakout, which will be an excellent bullish signal. The movement should be rapid and on the large volume. A stop loss should be placed slightly below the breakout volume bar. The potential of the deal is about 100-110 points.

AUD/USD

The Australian dollar is in the middle of the local consolidation between the support level 0.7058 and the resistance level 0.7200. Given this factor, we can consider new trading scenarios only after a confident exit of the price from the range. The breakout movement should be abrupt and on the large volume, which will insure us against fake breakout and a more reliable signal to enter the market.

XAU/USD

Gold continues trading in the small and local consolidation just below the resistance level 1231.50. Considering the previous sharp rise of the price on the large volume, we still should give preference to long positions.

However, purchases can only be opened after a rapid breakout of the resistance level on the large volume, which will be a stronger signal for entering the market. A stop loss should be placed under the breakout volume bar. The potential of the deal is more than 150 points.

The sentiment: this indicator confirms our scenarios with the Pound and the Canadian dollar. The situation with gold is ambiguous, so it is better to wait for a confirmation signal. With all other currency pairs, we should wait for a confident exit of prices from consolidations and only after that we can consider new deals.