Weekly Technical Forex Forecast 10-14.12.2018


EUR/USD

The Euro showed no significant movements on Friday and continued trading within the local range. The boundaries of the consolidation: the support 1.1267 and the resistance 1.1463. It is also necessary to note the presence of the large volume within this range.

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

GBP/USD

The Pound is also within the local range between 2 strong volume levels: the support 1.2670 and the resistance 1.2880. In addition, it is necessary to highlight the presence of the large volume accumulation within this range.

Considering these factors, we can regard new trading scenarios only after the exit of the price from the range. Furthermore, the movement must be swift and on the large volume, which will insure us against a false breakout and will be a more reliable signal to enter the market.

USD/JPY

After a sharp correction of the price up from the new support level 112.21, the Yen continues trading within the local consolidation. The upper limit of the range – the resistance level 113.62 – 113.75. Given this factor, we need to wait for the exit of the price from the range and only after that we can enter the market. The breakout movement must be supported by the large volume, which will be a more accurate and strong signal to enter the market.

USD/CAD

The Canadian dollar showed a significant and sharp drop on the large volume on Friday. However, we cannot open sales at the moment, as the pair is inside the local consolidation. The range boundaries: the support 1.3168 and the resistance 1.3429. Thus, we can consider new positions only after the exit of the price from it. The movement should be sharp and on the large volume, which will insure us against a false breakout.

AUD/USD

The Australian dollar continued its decline and is currently testing the support level/lower limit of the local range 0.7202. This gives us the opportunity to consider a scenario of the breakdown of this mark, which will be an excellent signal for opening short positions. The fall should be sharp and supported by the large volume, which 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 about 110 points.

XAU/USD

Gold showed a rapid and sharp growth on the large volumes on Friday. Moreover, the price broke the previous resistance level, which is an excellent bullish signal. Thus, we should give preference exactly to long positions with this instrument.

Purchases can be opened after a small and smooth downward correction to get a better entry point to the market. A stop loss should be placed just below the start of the breakout movement. The potential of the deal is more than 150 points.

The sentiment: with regard to market sentiment, this indicator confirms our deals with the Australian dollar and gold, which is a strong confirming signal. We need to wait for a steady exit of prices from local consolidations with other instruments so that we can open new positions.