Weekly Technical Forex Forecast 21-25.01.2019


EUR/USD

The Euro continued its decline on the increased volume on Friday, however, the price is still within the local range between 2 strong levels. They are the support 1.1267 and the resistance 1.1585. It is also worth highlighting the presence of the large volume accumulation in this range.

Taking into account all these factors, we can consider new deals only after a confident and rapid exit of the price from the consolidation. The breakout movement must be supported by the large volume, which will be a more accurate and strong signal to enter the market.

GBP/USD

The Pound showed a significant and rapid fall, but the movement was on the small volume, so we cannot consider the scenario of opening short positions. Moreover, the price is trading within the local range between the support level 1.2697 and the resistance level 1.2995.

Thus, we can consider new positions with this pair only after a confident and abrupt exit of the price from the consolidation. The movement should be supported by the large volume, which will insure us against a false breakout.

USD/JPY

The Yen showed a sharp rise of the pair on the increased volume and broke out the previous resistance level on Friday. This is an excellent bullish signal, so we should give preference to long positions. Purchases should be opened after a small price correction down, in order to get a better entry point. A stop loss should be placed slightly below the start of the breakout volume bar. The potential of the deal is more than 100 points.

USD/CAD

The Canadian dollar showed no significant movements on Friday and continues trading within the local range between 2 strong levels. They are the support 1.3183 and the resistance 1.3322. Thus, we should wait for a confident exit of the price from the consolidation and only after that we can open new positions. Moreover, this movement should be supported by the large volume, which will be a more accurate signal to enter the market.

AUD/USD

The Australian dollar is also located within the local range, in which the large volume is concentrated. The borders of the consolidation are the support 0.7117 and the resistance 0.7235. Considering these factors, we can regard new positions only after a rapid exit from this consolidation. The breakout movement should be supported by the large volume, which will be a more reliable signal to enter the market.

XAU/USD

Gold showed a sharp drop and is now testing the level of support/lower limit of the local consolidation 1280.00. Given that the movement was on the large volume, we can consider a scenario of the breakdown of this mark, which will be an excellent bearish signal.

The downward movement must be swift and on the large volume, which will insure us against a false breakdown. A stop loss should be placed slightly above the breakout volume bar. The potential of the deal is more than 150 points.

The sentiment: this indicator fully confirms our scenario of opening long positions with the Yen (trading against the “crowd”). With gold, the situation is the opposite, so we should be more careful. As with other instruments, we can consider new deals only after a confident exit of prices from consolidations.