Weekly Technical Forex Forecast 20-24.05.2019


EUR/USD

The Euro showed a significant and sharp drop and is now trading near the support level 1.1121. Thus, we can consider a scenario of its breakdown, which will allow to open short positions.

Sales can be opened after confident breakdown of the support level 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 potential of the deal is more than 100 points.

GBP/USD

The Pound continued its rapid decline of the price on Friday. The movement was on the average volume, so we can not point out any new volume level or zone. Nevertheless, given the presence of a strong local downtrend, we still should give preference to short positions.

Sales should be opened after the continuation of a sharp drop, but 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 just above the beginning of this movement. The potential of the deal is more than 120 points.

USD/JPY

The Yen corrected upward on the increased volume, which is a good bullish signal. Moreover, the price is now trading near the resistance level 110.25, so we can open purchases only after its breakdown. The 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 breakdown volume bar. The potential of the deal is about 110-120 points.

USD/CAD

The Canadian dollar tested the resistance level 1.3514, after which it sharply adjusted downwards. At the moment, the is trading within the local range between this mark and the support level 1.3382. Thus, we can open new deals only after the exit of the price from the consolidation. The breakout movement must be confident 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 continued its downward movement on Friday, but the volume was evenly spread throughout the movement, so we can not allocate any volume level or zone, except for the previous resistance 0.6932. Given the presence of a strong downward local downtrend, we should give preference to sales. Short positions can be opened after a small and smooth price correction upwards in order to get a more profitable entry point into the market. A stop loss should be placed slightly above the resistance level. A potential of the deal is more than 80 points.

XAU/USD

Gold showed a sharp and confident price drop on the large volume on Friday, which is an excellent demonstration of the strength of sellers. It is also necessary to emphasize that the price is trading near the support/lower limit of the local range 1267.30.

Taking into account all the above factors, we can consider a scenario of the breakdown of this mark, which will allow to open short positions with gold. The fall should be rapid and on a large scale. A stop loss should be placed slightly above the breakout volume bar. The potential of the deal is more than 150 points.

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

The sentiment: this technical indicator fully confirms our trading scenarios for all instruments (trading against the “crowd”). As with the Canadian dollar, sentiment indicates the preference of long positions, but we can open new positions after the exit of the price from the consolidation.

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

While out of the market: USD/CAD

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