Weekly Technical Forex Forecast 03-07.12.2018


EUR/USD

The Euro showed a rapid decline and is now trading near the support/lower limit of the local range 1.1267. Given that the movement was on the increased volume, we can consider a scenario of the breakdown of this mark, which would be an excellent signal for opening sales.

The downward movement should be confident and on the large volume, which will be a more accurate and strong signal to enter the market. A stop loss should be placed slightly above the breakdown volume bar. The potential of the deal is more than 100 points.

GBP/USD

The Pound also showed a sharp drop and is currently testing the support level/lower limit of the local consolidation 1.2742. Thus, we can consider a scenario of the breakdown of this mark, which will be an excellent bearish signal.

The breakout movement must be swift and supported by 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 breakdown volume bar. The potential of the deal is more than 120 points.

USD/JPY

The Yen resumed its growth and tested the resistance level 113.62 – 113.75. The price could not break it out, but remained trading near this mark. Thus, we can consider a scenario of its breakout, which will allow us to open long positions. The movement should be sharp and on the large volume. A stop loss should be placed slightly below the breakout volume bar. The potential of the deal is about 80 points.

USD/CAD

The Canadian dollar is within the local range between 2 strong volume levels. They are the support level 1.3144 and the resistance level 1.3356. Considering these factors, we can open new positions only after a confident and rapid exit of the price from the consolidation. The movement should be supported by the large volume, which will insure us against a false breakout and will be a more accurate signal to enter the market.

AUD/USD

The Australian dollar is trading near the resistance/local maximum 0.7330. Given the sharp increase of the price on the large volume last week, we can consider a scenario of the breakout of this mark, which will allow us to open purchases. The movement should be supported by the large volume, which will be a more reliable signal to enter the market. A stop loss should be placed slightly below the breakout volume bar. The potential of the deal is more than 80 points.

XAU/USD

Gold tested the resistance level  1227.00 – 1228.30, then sharply fell down. Now the price is within the local range between this mark and the previous support level 1212.30.

Thus, we can open new deals only after the confident breakout of one of the levels and abrupt exit of the price from the consolidation. The movement should be supported by the large volume, which will be a stronger and more accurate signal to enter the market.

The sentiment: the market sentiment confirms all our trading scenarios, which is an excellent additional signal. As with gold and the Canadian dollar, we can regard new deals only after a sharp and confident exit of prices from local consolidations.