Weekly Technical Forex Forecast 10-14.06.2019


EUR/USD

The Euro showed a significant and sharp growth on the large volume and broke out the previous resistance level, which is an excellent bullish signal. Thus, we should consider exceptionally long positions at the moment.

Purchases can be opened after a small and smooth price correction down, in order to get a better entry point to the market. A stop loss should be placed slightly below the breakout volume bar. The potential of the deal is more than 100 points.

GBP/USD

The Pound continues trading within the local range between 2 strong volume levels. They are the support 1.2568 and the resistance 1.2796. It is also worth noting that the large volume is concentrated within this consolidation.

Taking into account all these factors, we can open new deals 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 trading inside the consolidation, it is better to stay out of the market.

USD/JPY

The Yen showed a significant drop on the large volume, however, it continues trading within the local range between 2 strong levels. They are the support level 107.83 and the resistance level 108.85. Thus, we can consider new trading scenarios only after a sharp exit of the price from the range. 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 trading inside the consolidation, it is better to stay out of the market.

USD/CAD

The Canadian dollar showed a significant drop on the large volume, which is an excellent bearish signal. It is also necessary to point out a new volume resistance level 1.3304 – 1.3314. Considering all these factors, we should consider exceptionally short positions. Sales should be opened after a small correction upwards to get a better entry point. A stop loss should be placed slightly above the new resistance level. The potential of the deal is more than 100 points.

AUD/USD

The Australian dollar showed a sharp rise and broke out the previous resistance level, which is an excellent bullish signal. On the other hand, the price corrected downwards after the formation of a new resistance level 0.7017. Thus, we can open purchases only after a confident breakdown of this mark. The movement must be swift and on the large volume, which will insure us against a false breakout. A stop loss should be placed slightly below the breakout volume bar. A potential of the deal is more than 80 points.

XAU/USD

Gold showed a rapid growth on the large volume and tested the resistance level 1343.60. The price could not breakout, but is still trading near it. Given this fact and the presence of a strong uptrend, we can consider a scenario of the breakout of resistance, which will be an excellent bullish signal.

The breakout movement should be sharp, confident and on the large scale, 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.

The sentiment: the market sentiment fully confirms our scenarios with the Euro, Canadian dollar and gold, which is an excellent additional signal. As with the Australian dollar, the situation is opposite, so we should be more careful. With the Pound and Yen, we need to wait for prices to go out of ranges and only then open new positions.

The best deals: EUR/USD, USD/CAD

Potentially good deals: AUD/USD, XAU/USD

While out of the market: GBP/USD, USD/JPY

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