Weekly Technical Forex Forecast 25.02-01.03.2019


EUR/USD

The Euro continues trading near the resistance/upper limit of the local range 1.1357. Thus, our previous scenario remains relevant: we can consider the breakdown of this mark, which will allow us to open long positions with the Euro.

The breakout movement should be confident and sharp, as well as on the large volume, which will be a more accurate signal to enter the market. A stop loss should be placed slightly below the breakout volume bar. The potential of the deal is about 100 points.

If the price is locked inside the consolidation, it is better to stay out of the market.

GBP/USD

The Pound tested the support level 1.2985 – 1.2998, but could not break it down, after that it showed a significant growth. At the moment, the price is located near the resistance level 1.3090. Thus, we can consider a scenario of the breakout of this mark, which will be an excellent bullish signal.

An upward movement should be abrupt and on the large volume, which will insure us against a false breakout and will be a more accurate 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 120 points.

USD/JPY

The Yen is currently trading within the local range between 2 strong volume levels. They are the support 110.26 and the resistance 111.09. Thus, we can consider new deals only after a confident and rapid exit of the price from the range. Moreover, the breakout movement should be supported by the large volume, which will be a more reliable signal to enter the market.

While the price is inside the consolidation, it is better to stay out of the market.

USD/CAD

The Canadian dollar showed a rapid decline and is trading close to the support level/lower limit of the local range 1.3075. Thus, we can consider a scenario of the breakout of this mark, which will allow to open short positions with this currency pair. The decline should be sharp and on the large volume, which will be a stronger signal to enter the market. A stop loss should be placed slightly above the breakout volume bar. The potential of the deal is about 90-100 points.

If the price continues trading inside the consolidation, it is better to stay out of the market.

AUD/USD

The Australian dollar is also inside the local consolidation between the support level 0.7058 and the resistance level 0.7204. Given this factor, we can consider new trading scenarios only after a confident exit of the pair from the range. The breakout movement should be supported by the large volume, which will be a more accurate signal to enter the market.

While the pair is trading inside the consolidation, it is better to stay out of the market.

XAU/USD

Gold showed a sharp growth on the increased volume, but the price is still within the local range between 2 strong volume levels. They are the support 1303.20 and the resistance 1345.40.

Thus, we can open new deals only after a sharp exit of the price from the consolidation. Moreover, the breakout movement must be sharp and on the large volume, which will be a more reliable and accurate signal for entering the market.

While the pair is within range, it is better to stay out of the market.

The sentiment: this indicator confirms our trading scenarios with the Pound and Yen, which is an excellent additional signal. The situation with the Euro is ambiguous, so we should wait for the appearance of a strong additional signal. As with other instruments, we can consider new positions only after a confident exit of prices from ranges.

Potentially good deals: EUR/USD, GBP/USD, USD/CAD

While out of the market: USD/JPY, AUD/USD, XAU/USD

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