Weekly Technical Forex Forecast 24-28.12.2018


EUR/USD

The Euro showed a rapid and sharp drop on Friday, but the movement was on the small volume, so we cannot open sales at the moment. In addition, the price continues trading within the local range between the support 1.1267 and the resistance 1.1463.

Considering these factors, we can regard new trading scenarios only after a steady exit of the price from the local consolidation. The movement should be supported by the large volume, which will be a more reliable signal to enter the market.

GBP/USD

Nothing has changed with the Pound as the price is still trading inside a small local consolidation. Nevertheless, considering the presence of a strong downtrend, we still should give preference to short positions.

Sales can be opened only after the resumption of the rapid drop of the pair, but the movement should be on the large volume. This will be a more accurate and reliable signal to enter the market. A stop loss should be placed just above the beginning of this movement. A potential of the deal is more than 100 points.

USD/JPY

The Yen is trading just below the resistance level 111.65 now, in which the large volume is concentrated. Given the recent sharp fall of the price, we should give preference to short positions. Sales can be opened after the resumption of a rapid price drop on the large volume, which will be a more accurate signal to enter the market. A stop loss should be placed slightly above the resistance level. A potential of the deal is more than 100 points.

USD/CAD

The Canadian dollar showed a significant growth on the increased volume and broke out the resistance level on Friday. This is a strong bullish signal. Thus, we should give preference to long positions. Purchases can be opened after a small price correction down to get a better entry into the market. A stop loss should be placed just below the start of the breakout movement. The potential of the deal is more than 100 points.

AUD/USD

The Australian dollar continued its decline. The movement was on the increased volume, but it was evenly spread throughout the fall, so we cannot single out any new level. Nevertheless, we should give preference to short positions. Sales can be opened after a slight price correction upwards to get a better entry point. A stop loss should be placed slightly above the beginning of the sharp decline. The potential of the deal is more than 80 points.

XAU/USD

Gold smoothly adjusted down on Friday. The fall was on the small volume, so we cannot consider it as a bearish signal. Moreover, given the strong local uptrend, we should prefer purchases. Long positions can be opened after a resumption of a keen rise of the price, but 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 just below the beginning of this growth. The potential of the deal is more than 150 points.

The sentiment: given this indicator fully confirms all of our trading scenarios, which is an excellent additional signal. As with the Euro, we can open new deals only after a sure exit of the price from the consolidation.

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