Weekly Technical Forex Forecast 18-22.03.2019


EUR/USD

The Euro continued its growth on Friday. The movement was on the average volume, so we can not allocate any new volume level or zone. Nevertheless, given the steady and rapid growth, we still should give preference to long positions.

Purchases can be opened after a continuation of a sharp growth on the large volume, which will be a more accurate and reliable signal to enter the market. A stop loss should be placed just below the beginning of this movement. The first goal is the resistance 1.1416.

GBP/USD

The Pound resumed sharp growth and is now trading near the resistance level/upper limit of the local range 1.3335. Thus, we can consider a scenario of the breakout of this mark, which will be an excellent bullish signal.

The breakout movement must be confident, rapid and on the large volume, which will be a stronger 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 corrected downwards on Friday, but the price is still trading near the resistance/upper limit of the local consolidation 112.00. Thus, our previous scenario remains relevant: we can consider a breakout of this mark, which will be an excellent bullish signal. An upward movement should be rapid and 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. A potential of the deal is more than 100 points.

If the price is trading within the local range, it is better to stay out of the market.

USD/CAD

The Canadian dollar adjusted upwards and is now trading in the middle of the local range between 2 strong levels. They are the support 1.3248 and resistance 1.3463. Given these factors, we can open new deals 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.

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

AUD/USD

The Australian dollar continues trading near the resistance/upper limit of the local range 0.7100. Thus, we can consider a scenario of the breakout of this mark, which will be a strong bullish signal. The growth of the pair should be rapid and on the large volume, which will be a more reliable signal for entering the market. A stop loss should be placed slightly below the breakout volume bar. The potential of the deal is about 90-100 points.

While the price is trading within the local range, it is better to stay out of the market.

XAU/USD

Gold continues trading within the local consolidation between 2 strong volume levels. The first one is the resistance level 1312.00, the second one is the support level 1293.50.

Thus, we can consider new trading scenarios only after a breakout of one of these levels and a confident exit of the price from the consolidation. The movement should be supported by the large volume, which will insure us against a false breakout.

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

The sentiment: this technical indicator confirms our trading scenarios with the Euro, Pound, Yen and the Australian dollar (trade against the “crowd”), which is an excellent additional signal. As with gold and the Canadian dollar, the sentiment shows that we should give preference to purchases, but we can open new deals only after a confident exit of prices from consolidations.

Potentially good deals: EUR/USD, GBP/USD, USD/JPY, AUD/USD

While out of the market: USD/CAD, XAU/USD