Weekly Technical Forex Forecast 27-31.05.2019


EUR/USD

The Euro continued correcting upwards on Friday and is trading within the local range between the support level 1.1112 – 1.1120 and the resistance level 1.1255. It should also be noted that the large volume is concentrated in this consolidation, so we may assume that big players are gaining their positions in it.

Taking into account all the above factors, we can open new positions only after a confident and rapid exit of the price from the range. 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 inside the consolidation, it is better to stay out of the market.

GBP/USD

The Pound also corrected upwards, but the movement was on the small volume, so we cannot point out any new volume level or zone. Moreover, given the strong downtrend for this pair, we still should give preference to short positions.

Nevertheless, sales can be opened after the resumption of a sharp drop and a confident breakdown of the support level 1.2607 – 1.2617. The movement should be 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 120 points.

If the price continues correcting, it is better to stay out of the market.

USD/JPY

The Yen showed a significant fall and now is trading near the support/lower limit of the local range 109.10. Thus, we can consider the scenario of the breakdown of this mark, which will be an excellent bearish signal. The decline should be sharp and 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.

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 1.3514. Thus, we can open new positions only after a confident exit of the price from the local 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.

AUD/USD

The Australian dollar continued its growth and is testing the resistance level 0.6932 now. Thus, we can consider the scenario of its breakdown, which will allow to open long positions, but we must be extremely careful, as the price grew up on the average volume. Purchases should be opened only after the rapid breakout of this mark on the large volume that will insure us against a false movement. A stop loss should be placed under the breakout volume bar. The potential of the deal is about 70 points.

XAU/USD

The situation with gold has not changed, as the price continues trading within the local range, in which the large volume accumulation is concentrated. The boundaries of the consolidation are the support 1267.30 and the resistance 1301.00.

Thus, we can open new positions only after a confident and sharp exit of the price from the range. The breakout movement should be supported by the large volume, which will be a stronger and more reliable signal to enter the market.

While the pair 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 and Yen (trading against the “crowd”), which is an excellent additional signal. As with the Australian dollar, the situation is opposite, so it is worth being extremely careful. With all other instruments, we can open new deals only after the exit of prices from local consolidations.

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

While out of the market: EUR/USD, USD/CAD, XAU/USD