Weekly Technical Forex Forecast 22-26.04.2019


EUR/USD

The Euro slightly adjusted upwards, but the price is still quite far away from the resistance level 1.1266 – 1.1276. Thus, we can open sales only after continuing a small correction of the pair in order to get a more profitable entry point into the market.

An upward movement should be smooth and on the small volume. A stop loss must be placed slightly above the resistance level. The potential of the deal is more than 100 points.

GBP/USD

The Pound continued its decline and is now testing the support level/lower limit of the local range 1.2985 – 1.2998. Thus, we can consider the scenario of the breakdown of this mark, which would be an excellent bearish signal.

The breakout movement should be sharp, confident and supported by the large volume, which will be a more accurate signal to enter the market. A stop loss should be placed slightly above the breakout volume bar. The potential of the deal is more than 120 points.

USD/JPY

The Yen is also testing the resistance level/local maximum 112.00. Thus, we can consider the scenario of a breakdown of this mark, which will be an excellent signal for opening long positions. The growth of the price 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 breakdown volume bar. The potential of the deal is more than 100 points.

USD/CAD

The Canadian dollar continues trading in the middle of the local range between 2 strong volume levels. The first is the support level 1.3248, the second is the resistance level 1.3463. Given this factor, we can open new positions only after the exit of the price from the local consolidation. The breakout movement must be confident and sharp, as well as on the large volume, which will be a more reliable signal to enter the market.

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

AUD/USD

The Australian dollar is also within local consolidation between 2 strong volume levels. They are the support level is 0.7056 and the resistance level is 0.7202. Thus, we can consider new trading scenarios only after a confident and rapid exit of the price from the range. Moreover, the movement should be on the large volume, which will be a stronger signal to enter the market.

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

XAU/USD

The situation with gold has not changed, the price is testing the support level/local minimum 1273.90. Thus, our previous scenario remains relevant: we can consider the breakdown of this mark, which will allow to open short positions.

The fall should be swift and sure, as well as supported by the large volume that will insure us against a false breakdown and will be a more accurate signal to enter the market. 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 technical indicator fully confirms our trading scenarios with the Euro, Pound, Yen and gold (trading against the “crowd”), which is an excellent additional signal. As with the Canadian and Australian dollars, we can open new positions only after the exit of prices from consolidations.

The best deals: EUR/USD, GBP/USD, USD/JPY, XAU/USD

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

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