Weekly Technical Forex Forecast 06-10.05.2019


EUR/USD

The Euro showed a sharp growth of the price on the large volume on Friday, but is still trading within the local range between 2 strong volume levels. They are the level of support 1.1121 and the level of resistance 1.1255.

Thus, our previous scenario remains relevant: we can open new positions only after a confident and rapid exit of the price 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 inside the consolidation, it is better to stay out of the market.

GBP/USD

The Pound also showed a rapid growth on the very large volume on Friday, which is an excellent bullish signal, as it indicates that the major players pushed the price up. On the other hand, most of the volume was concentrated at the top of the movement, where a new resistance level 1.3138 – 1.3166 was formed.

Thus, we can consider a scenario of opening long positions only after a confident breakout of this mark. Moreover, the movement should be supported by 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 150 points.

USD/JPY

The Yen opened with a small “gap” today and “broke down” the previous support level, which is a good bearish signal. It is also necessary to point out the resistance level 111.50, from which the sharp fall of the price began on Friday. Thus, we should give preference to short positions, but sales can be opened after a slight correction of the price upwards in order to get a better entry point. A stop loss should be placed slightly above the new resistance level. The potential of the deal is about 100-110 points.

USD/CAD

The Canadian dollar continues trading within the local range between 2 strong volume levels. They are the support 1.3382 and the resistance 1.3510. Thus, we can open new positions only after a rapid and abrupt exit of the price from the consolidation. 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 within the local range, it is better to stay out of the market.

AUD/USD

AUD/USD also opened with a “gap” below the previous level of support today. However, a further price drop was stopped by a new volume level 0.6966. Thus, we can open short positions only after a sharp breakdown of this mark on the large volume, which will be a more reliable signal to enter the market. A stop loss should be placed slightly above the breakout volume bar. A potential of the deal is more than 80 points.

XAU/USD

Gold showed a significant growth on the large volume on Friday, but is still trading inside the local consolidation between 2 strong volume levels. They are the support level 1267.30 and the resistance level 1295.10.

Thus, we can open new positions only after a confident and rapid exit of the price from the consolidation. Moreover, the breakout movement should be supported by the large volume, which will be a more accurate signal to enter the market.

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

The sentiment: this technical indicator fully confirms our trading scenarios with the Pound, Yen and the Australian dollar (trading against the “crowd”), which is an excellent additional signal. As with other instruments, we can consider new positions only after the exit of prices from consolidations.