Weekly Technical Forex Forecast 29.10-02.11.2018


EUR/USD

The Уuro sharply adjusted upwards on the increased volume on Friday. However, the price did not break out the volume resistance level 1.1428. Moreover, given the local downtrend, we still should give preference to sales.

Short positions can be opened after a stoppage of the price correction and a resumption a sharp drop 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 90 points.

GBP/USD

The Pound also corrected upwards on Friday, but the movement was smooth and on the small volume. Moreover, given the presence of a strong downtrend, we should give preference to short positions.

Sales can be opened after a small price correction upwards on the small volume in order to get a more profitable entry point. A stop loss should be placed just above the beginning of the recent sharp fall of the price. The potential of the deal is more than 120 points.

USD/JPY

The Yen fell down and broke down the previous support level on Friday. However, after the formation of the new volume level 111.49, the price adjusted upwards. At the moment, the pair is trading in the local range between this mark and the resistance level 112.76 – 112.89. Thus, the best solution with the Yen will be to wait for a sure exit from the consolidation. The breakout movement must be confident and on a large volume, which will be a more accurate signal to enter the market.

USD/CAD

The Canadian dollar broke out the previous resistance level, but could not continue its growth and sharply corrected downwards. The fall was on the small volume, and given the presence of a strong local uptrend, we still should give preference to purchases.

It is also worth highlighting the new volume level 1.3151. Thus, we can open long positions only after a confident breakout of this mark. The movement should be supported by the large volume, which will insure us against a false breakout. 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 showed a significant growth on the large volume and is currently trading within the local range between 2 strong levels. They are the new support level 0.7026 and resistance level 0.7150. Taking into account these factors, we can consider new trading scenarios only after a confident and rapid exit of the price from the consolidation. The breakout movement should be supported by the large volume, which will insure us against a false breakout and will be a more reliable signal to enter the market.

XAU/USD

Gold showed a significant growth and broke out the previous resistance level, but the price could not continue the upward movement, after which it sharply corrected downwards. It is also necessary to highlight the new volume resistance level 1242.50.

Thus, now the pair is trading again within the local range between this mark and the previous support level 1221.00. Hence, we can open new deals only after a confident and abrupt 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 be a more reliable signal to enter the market.

 

 

 

The sentiment: this indicator fully confirms our trading scenarios with the Euro, Pound and Canadian dollar, which is an excellent additional signal. As with other instruments, we should wait for a confident exit of prices from ranges.

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