Weekly Technical Forex Forecast 08-12.07.2019


EUR/USD

The Euro showed a sharp and confident drop supported by the large volume, which is a great signal that big players pushed the price downwards. Now the pair is located near the level of support/lower boundary of the local range 1.1185. Therefore, we may reckon a scenario of its breakdown, which will allow us to open short positions.

The sink must be keen and supported by the large volume, which will insure us against a fake breakout. A stop loss should be placed above the breakdown volume bar. A potential of the deal is more than 100 pips.

GBP/USD

The same situation here. The price demonstrated a confident and keen drop supported by the large volume. However, the further move was stopped after the formation of the new volume level of support 1.2497. Nevertheless, given the strong local downtrend and the fact that the price is trading near this mark, we may regard a scenario of its breakdown, which will be a great bearish signal.

The drop of the price must be abrupt and supported by the large volume, that will be a more reliable signal for entering the market. A stop loss should be placed above the breakdown volume bar. A potential of the deal is more than 120 pips.

USD/JPY

The Yen indicated a confident and keen growth supported by the huge volume. Besides it, we need to point out the new level of resistance 108.56, which contains increased volume. Thus, we can open long positions only after the sharp and sure breakout of this mark. Furthermore, the movement must be supported by the large volume, which will be a more secure signal for entering the market. A stop loss should be placed below the breakout volume bar. A potential of the deal is more than 100 pips.

USD/CAD

The Canadian dollar grew up strongly, but after the creation of the new resistance 1.3128, the price resumed falling. The drop was sharp and confident. Hence, we still should give preference to short positions. We can enter the market after a smooth upward correction, in order to get a better entry point. A stop loss should be placed above the new resistance level. A potential of the deal is more than 100 points.

AUD/USD

The Australian dollar corrected downwards, but is still located near the resistance level/upper limit of the local consolidation 0.7036. Hence, we still may regard a scenario of its breakout, which will allow us to open long positions. The surge must be keen, rapid and supported by the large volume. A stop loss should be placed below the breakout volume bar. A potential of the deal is more than 80 pips.

XAU/USD

Despite an abrupt drop supported by the large volume, the price is still trading within the local range between the level of support 1383.30 and the level of resistance 1435.80. The large volume is concentrated within this consolidation, therefore we may open new positions only after the sharp and confident exit of the price from it.

Furthermore, the movement must be supported by the large volume, which will be a more reliable signal for entering the market.

While the price is trading inside this range, we’d better stay out of the market.

The sentiment: this technical indicator totally affirms all our trading scenarios (trading against the “crowd”), that is a great additional signal. As with gold, we can open new positions only after the exit of the price from the local consolidation.

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