Weekly Technical Forex Forecast 19-23.11.2018


EUR/USD

The Euro showed a significant and sharp rise on Friday and is now trading near the resistance/upper limit of the local range 1.1425. Given that the upward movement was on the large volume, we can consider a scenario of the breakout of this mark, which will allow us to open long positions.

The breakout movement must be swift and supported by the large volume, which will be a more accurate and reliable signal to enter the market. A stop loss should be placed under the breakout volume bar. Our first target – 70 points, the second one – 120 points.

GBP/USD

The Pound smoothly adjusted upwards on Friday, but the movement was on the small volume, so we can’t consider purchases at the moment. Moreover, given the recent sharp drop on the large volume, we still should give preference to sales.

Short positions can be opened after the resumption of a sure decline and the breakdown of the support level 1.2742. Moreover, the fall should be on the large volume, which will insure us against a false breakdown. A stop loss must be placed slightly above the breakout volume bar. The potential of the deal is more than 120 points.

USD/JPY

The Yen showed a sharp and rapid fall and broke down the previous support level on Friday, which is an excellent bearish signal. In addition, the movement was on the large volume, so we should give preference to sales.

Short positions can be opened after a small and smooth price correction upwards in order to get a more profitable entry point. A stop loss should be placed slightly above the breakout volume bar. The potential of the deal is about 80 points.

USD/CAD

The Canadian dollar is still trading within the local range between 2 strong levels. They are the support 1.3055 and the resistance 1.3258. Given these factors, we can open new positions only after a confident and abrupt exit of the price from the consolidation. The breakout movement should be supported by the large volume, which will be a more accurate signal to enter the market.

AUD/USD

The Australian dollar rose sharply and broke out the previous resistance level, which is an excellent bullish signal. The upward movement was supported by the large volume, which only enhances its value. Given these factors, we should give preference exactly to long positions.

Purchases can be opened after a small price correction down to get a better entry point. A stop loss should be placed just below the start of the breakout movement. The potential of the deal is more than 80 points.

XAU/USD

Gold also showed rapid growth on the large volume, which is a good bullish signal. Unfortunately, the further movement was stopped by the new resistance level 1223.50 – 1224.90. Thus, we can open purchases only after the breakout of this mark.

The price growth must be confident and sharp, as well as supported by the large volume, which will insure us from a false breakout and will be a more accurate signal to enter the market. A stop loss should be placed slightly below the breakout volume bar. The potential of the deal is about 100 points.

The sentiment: this indicator fully confirms all our trading scenarios, which is an excellent additional signal. The only exception is gold, so we should be more careful with this tool. For the Australian dollar, we need to wait for a confident exit of the price from consolidation and only after that we can open new deals.