Weekly Technical Forex Forecast 08-12.04.2019


EUR/USD

The Euro is still located inside the local consolidation, where the large volume is concentrated. It means that institutional players are gaining new their positions before the beginning of the new local trend. The boundaries of the range are the support 1.1187 and the resistance 1.1252.

Hence, the best solution with this instrument is just to wait for the exit of the price from the range and only after that we can consider new positions. Furthermore, the movement must be supported by the large volume, which will be a more reliable and accurate signal for entering the market.

Until that, while the price is located inside the range, we’d better stay out of the market.

GBP/USD

The Pound resumed falling and now is trading near the level of support/lower limit of the local range 1.2985 – 1.2998. Therefore, we can consider a scenario of its breakdown, which will be a great signal for opening short positions.

The fall must be keen and supported by the large volume, which will insure us against a fake breakdown. A stop loss should be placed overhead the breakdown volume bar. Our first target is the level 1.2797.

USD/JPY

The Yen continued growing and now is trading nigh the level of resistance/the upper limit of the local range 112.00. Therefore, we can consider a scenario of a continuation of this rise and a breakout of this level, which will allow us to open long positions. The surge of the price must be supported by the large volume, in order to insure us against a fake breakout. A stop loss should be placed underneath the breakout volume bar. A potential of the deal is more than 100 points.

USD/CAD

USD/CAD is still trading within the range between the support level 1.3248 and the level of resistance 1.3463. Thus, we can consider new positions only after the keen exit of the price from the range. The breakout movement must be keen and supported by the large volume, which will be a more secure and precise signal for entering the market.

While the price goes on trading inside the range, we’d better stay out of the market.

AUD/USD

The same situation with AUD/USD as the price is locked inside this local consolidation between 2 strong volume levels. The first one is the support 0.7008, the second one is the resistance 0.7165. Hence, the best solution with this pair is just to wait for the exit of the price from the range and only after that we can open new positions. The movement must be supported by the large volume, which will be a more accurate and reliable signal for entering the market.

Until that, we’d better stay out of the market.

XAU/USD

Nothing has changed with gold as the price is still located inside the local range where the large volume is concentrated. The boundaries of the consolidation are 2 strong volume levels. The first one is the level of support 1282.00, the second one is the level of resistance 1299.60.

Hence, the best solution with gold is just to wait for the breakout of one of these levels and the confident exit of the price from the range, and only after that we could open new positions. The breakout movement must be supported by the large volume, which will insure us against a false breakout.

Until that, while the price is trading inside this range, we’d better stay out of the market.

The sentiment: this technical indicator totally affirms our trading scenarios with the Pound and Yen, which is a great additional signal (trading against the “crowd”). As with other instruments, we can open new positions only after the confident exit of prices from local ranges.