Weekly Technical Forex Forecast 26-30.11.2018


EUR/USD

Despite the relatively sharp drop of the price on the increased volume on Friday, the Euro continues trading within the local range between 2 strong levels. They are the support 1.1267 and the resistance 1.1463.

Thus, we can open new positions with the Euro only after the exit of the price from the consolidation. Moreover, the breakout movement must be confident and rapid, and also supported by the large volume, which will be a more accurate signal to enter the market.

GBP/USD

The Pound also showed a rapid decline and almost completely swallowed the previous sharp surge of the price, which is a good bearish signal. It is also worth noting that the pair is near the support level 1.2742, which makes it possible to consider a scenario of the breakdown of this mark.

The fall of the price should be confident and on the large volume, which will insure us against a false breakdown and will be a more reliable signal to enter the market. A stop loss should be placed slightly above the breakout volume bar. The potential of the deal is more than 120 points.

USD/JPY

The Yen rose significantly, but the movement was on the small volume. Moreover, the pair goes on trading within the local consolidation between the support 112.35 and the resistance 113.69. Considering these factors, we can regard new deals only after a sharp breakout of one of these levels and the exit of the price from the range. The movement should be supported by the large volume, which will be a more accurate and strong signal to enter the market.

USD/CAD

The Canadian dollar is also within the local range between the support level 1.3055 and the resistance level 1.3315. Thus, the best solution with this instrument will be to wait for a swift and confident exit of the price from the consolidation. The breakout movement should be supported by the large volume, which will be a more reliable signal to enter the market.

AUD/USD

The Australian dollar continues trading in the middle of the local range between 2 strong levels. They are the support level 0.7170 and the resistance level 0.7330. Given this factor, we can consider new trading scenarios only after a rapid exit of the pair from the consolidation. The movement should be supported by the large volume that will insure against a false breakout and will be a more accurate signal to enter the market.

XAU/USD

Gold adjusted downwards on Friday, but the movement was on the small volume. Therefore, we cannot consider purchases at this time. It should also be noted that the pair carries on trading near the resistance level 1227.00 – 1228.30. This gives us the opportunity to ponder a scenario of the breakout of this mark, which will be an excellent bullish signal.

The growth of the price should be sharp, strong, and also supported by the large volume, which will be a more accurate and reliable signal to enter the market. A stop loss must be placed slightly below the breakout volume bar. The potential of the deal is about 80 points.

The sentiment: this indicator fully confirms our scenario with the Pound, which is a good additional signal. With gold, the situation is opposite, so we should be more careful. As with other instruments, we need to wait for a confident exit of prices from consolidations and only after that we can enter the market.