Weekly Technical Forex Forecast 13-17.05.2019


EUR/USD

The Euro continued its upward movement, moreover, the growth was on the large volume, which is a strong bullish signal, as it means that it was institutional players that pushed the price up. At the moment, the pair is trading near the resistance level 1.1255.

Thus, we can open purchases only after a confident and sharp breakout of this mark. The price growth 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. The potential of the deal is more than 120 points.

GBP/USD

The Pound showed a rapid fall of the price last week and is now testing the support level/lower limit of the local range 1.2994. Thus, we can consider the scenario of the breakdown of this mark, which will allow us to open short positions.

The fall of the price should be swift and confident, 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 above the breakout volume bar. The first goal is the support level 1.2871.

USD/JPY

The Yen corrected upwards after the test of the support/local minimum level 109.54. Nevertheless, given the strong local downtrend, we still should better give preference to short positions in this instrument. Sales can be opened after the resumption of the fall of the price and a confident breakdown of the support level. The movement should be supported by 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. The potential of the deal is more than 100 points.

USD/CAD

The Canadian dollar showed a significant and sharp drop on Friday, despite this, the price continues trading within the local range between 2 strong volume levels. They are the support 1.3382 and the resistance 1.3514. Thus, our previous scenario remains relevant: we can open new deals only after the exit of the price from the consolidation. The breakout movement must be swift and on the large volume, which will be a more reliable signal to enter the market.

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

AUD/USD

The Australian dollar corrected upwards after the test of the support/local minimum level 0.6966. At the moment, the price is trading within the local range between this mark and the resistance level 0.7060. Thus, we can open new deals only after a sharp exit of the price from the range on the large volume. This will be a more accurate and reliable signal to enter the market.

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

XAU/USD

Gold continues trading within the local range between 2 strong volume levels. They are the support 1267.30 and the resistance 1295.10. It is also worth noting that the large volume is concentrated within this consolidation, so we can assume that large players are gaining positions in this range.

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

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

The sentiment: this technical indicator fully confirms our trading scenarios for the euro, pound and yen (trading against the “crowd”), which is an excellent additional signal. As for the rest of the instruments, it is necessary to wait for a confident exit of prices from local consolidations.

Potentially good deals: EUR/USD, GBP/USD, USD/JPY
While out of the market: USD/CAD, AUD/USD, XAU/USD

8 Comments

Leave a Reply

Your email address will not be published. Required fields are marked *