Weekly Technical Forex Forecast 17-21.06.2019


EUR/USD

The Euro showed a significant drop on the increased volume and is now testing the support level 1.1220. Thus, we can consider a scenario of its breakdown, which will allow opening short positions.
The fall should be confident, 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 about 100 points.

GBP/USD

The Pound also showed a sharp and rapid decline on the increased volume and is now trading near the support/lower limit of the local range 1.2568. Thus, we can consider a scenario of the breakdown of this mark, which will be an excellent bearish signal. The movement must be confident and supported by the large volume that will insure against a false breakdown. A stop loss should be placed slightly above the breakout volume bar. A potential of the deal is more than 120 points.

USD/JPY

The Yen continues trading within the local range between 2 strong volume levels. They are the support 107.83 and the resistance 108.85. Thus, we can open new positions only after a confident exit of the price from it. Moreover, the breakout movement must be confident and on the large volume, which will be a more accurate signal to enter the market.
While the pair is trading inside the consolidation, it is better to stay out of the market.

USD/CAD

The Canadian dollar showed a sharp rise and broke out the previous resistance level, which is an excellent bullish signal. Moreover, the movement was on the large volume, which only enhances its value. Considering all these factors, we should give preference to purchases. Long positions can be opened after a small price correction down to get a better entry point. A stop loss should be placed just below the start of the breakout movement. A potential of the deal is more than 100 points.

AUD/USD

The Australian dollar showed a rapid decline on the increased volume. It is also necessary to allocate a new resistance level 0.6916. Given all these factors, we should give preference to short positions. Sales can be opened after a slight price correction up to get a better entry point. A stop loss should be placed slightly above the resistance level. A potential of the deal is more than 80 points.

XAU/USD

Gold sharply adjusted downwards on Friday. Moreover, the movement was supported by the large volume. On the other hand, the pair is still trading within the local range between the support level 1320.60 and the resistance level 1355.00.

Thus, we can consider new trading scenarios only after a confident exit of the price from the range. The breakout movement must be swift and on the large volume, which will be a 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 Euro, Pound, Canadian and Australian dollars (trading against the “crowd”), which is an excellent additional signal. As with the Yen and gold, we can open new deals only after the exit of prices from local consolidations.

Potentially good deals: EUR/USD, GBP/USD, USD/CAD, AUD/USD

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

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