Weekly Technical Forex Forecast 22-26.07.2019


EUR/USD

The Euro continued its downward movement and now the price is trading near the support/lower limit of the local range 1.1200. Given that the decline was sharp and on the increased volume, we can consider a scenario of the breakdown of this mark, which will allow us to open short positions with the Euro.

The breakout movement must be swift, confident and supported by 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 continues trading within the local range between the support level 1.2400 and the resistance level 1.2585. Considering that the large volume is concentrated within this consolidation, 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 reliable signal to enter the market.

While the price is within the range, it is better to stay out of the market.

USD/JPY

The Yen corrected upwards and is now trading in the middle of the local range between the support 107.25 and the resistance 108.35. Thus, we can consider new trading scenarios only after a rapid exit of the price from the consolidation. 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 within the range, it is better to stay out of the market.

USD/CAD

The Canadian dollar tested the resistance level 1.3090, but could not break it down, after which it sharply adjusted downwards. Now the pair is inside the local range between this level and the support 1.3023. Thus, we can open new positions only after a sharp exit of the price from the consolidation. Moreover, the movement should be supported by the large volume, which will be a more accurate and strong signal to enter the market.

While the price is trading inside the consolidation, it is better to stay out of the market.

AUD/USD

The Australian dollar slightly corrected down on Friday. However, the price is still trading above the support level 0.7007. Given the presence of the local uptrend, we still should give a slight preference to long positions. Purchaes can be opened after a small and smooth price correction down to get a better entry point. A stop loss should be placed just below the support level. The potential of the deal is more than 80 points.

XAU/USD

Gold showed a sharp drop on the large volume on Friday and is now trading within the local range between 2 strong levels. They are the support 1404.50 and the resistance 1445.80.

Thus, we can open new positions only after a confident and rapid exit of the price from the range. Moreover, the movement should be 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.

The sentiment: this technical indicator fully confirms our trading scenarios with the Euro and the Australian dollar, which is an excellent additional signal (trading against the “crowd”). As with other instruments, we can open new positions only after a confident exit of prices from consolidations.

The best deals: EUR/USD, AUD/USD

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

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