Weekly Technical Forex Forecast 14-18.01.2019


EUR/USD

The Euro showed a significant drop on Friday. The downward movement was keen and on the large volume. On the other hand, the pair is still trading inside the local range between 2 strong levels. They are the support 1.1267 and the resistance 1.1585. Moreover, there is a huge volume accumulation within this consolidation.

Given all these factors, the best decision with this instrument is just to wait for the sure and sharp exit of the price from the consolidation. The breakout move should be supported by the large volume, which will insure us against a false breakout.

GBP/USD

On Friday, the Pound showed a significant and strong price growth and broke out the previous resistance level/upper limit of the local range. Moreover, this movement was on the large volume, which is an excellent bullish signal. It is also worth noting that the large volume is at the bottom of the chart and acts as a support for the price. Considering all these factors, we should give preference exactly to long positions.

Purchases can be opened after a small and smooth downward price 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 about 120 points.

USD/JPY

The Yen goes on trading inside the local range between 2 strong volume levels. They are the level of support 107.28 and the level of resistance 109.46. Therefore, we can regard new positions only after the confident and abrupt exit of the pair from the local consolidation . The breakout movement must be supported by the large volume, which will be a more reliable and accurate signal for entering the market.

 

USD/CAD

The Canadian dollar grew up on the increased volume on Friday. Now the pair is trading within the local range between the support level 1.3183 and the resistance level 1.3322. Considering all these factors, we can consider new deals only after the sure and keen exit of the price from the local range. The movement must be supported by the large volume, which will insure us against a fake breakout and will be a more reliable signal for entering the market.

AUD/USD

The Australian dollar indicated a smooth price correction downwards. The move was on the increased volume, nevertheless, given the presence of the local uptrend and strong volume level of support, we still should give advantage to purchases. Long positions can be opened only after a stoppage of the drop and a resumption of the keen growth. The surge should be supported by the large volume. A stop loss should be placed below the beginning of this rise. A potential of the deal is more than 80 points.

XAU/USD

The price goes on being locked inside the local range between 2 strong volume levels. The first one is the support level 1280.00 and the second one is the resistance level 1297.00. We also should allocate that the large volume is concentrated within this consolidation.

Thus, the best decision with gold is just to wait for the sharp exit of the price from the local range. Furthermore, the breakout move should be supported by the large volume, which will be a more secure and preicse signal for entering the market.

The sentiment: the mood of the market acknowledges scenarios with the Pound and Australian dollar, which is a great confirming signal. As with other instruments, we should wait for the exit of pairs from local ranges and only after that we can open new positions.

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