Weekly Technical Forex Forecast 29.07-02.08.2019


EUR/USD

The Euro has resumed its decline and is now trading near the support/local minimum 1.1109. Given the presence of the strong local downtrend, we can consider a scenario of the breakdown of this mark, which will allow us to open short positions.

The breakout movement must be confident, rapid and supported by 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 100 points.

GBP/USD

The Pound showed a sharp and steady fall on the increased volume and broke down the previous support level, which is an excellent bearish signal. Therefore, we should give preference to short positions.

Sales can be opened after a small and smooth price correction upwards to get a better entry point. A stop loss should be placed slightly above the beginning of the breakout movement. A potential of the deal is more than 120 points.

USD/JPY

The Yen continues trading above the support level 108.42, in which the large volume is concentrated. Given the recent sharp growth of the price, we still should give preference to purchases. Long positions can be opened after a small and smooth correction of the price down. A stop loss should be placed slightly below the beginning of a sharp rise. A potential of the deal is more than 100 points.

USD/CAD

The Canadian dollar corrected downward after the formation of a new resistance level 1.3189, in which the increased volume is concentrated. Nevertheless, the pair is still trading near this mark, and given the presence of a sharp surge last week, we can consider a scenario of its breakout . This will be a great bullish signal. The breakout movement must be confident and on the large volume. A stop loss should be placed slightly below the breakout volume bar. A potential of the deal is more than 100 points.

AUD/USD

The Australian dollar continued its decline, moreover, the movement was on the increased volume, which was evenly distributed. Thus, the only volume level that we can point out is the previous resistance 0.6975. Considering all these factors, we should give preference to sales. Short positions can be opened after a small and smooth correction of the price upwards. A stop loss should be placed slightly above the resistance level. A potential of the deal is about 90 points.

XAU/USD

Gold carries on trading within the local range between 2 strong levels. They are the support 1404.50 and the resistance 1445.80. It should also be noted that the large volume is concentrated within this consolidation.

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

The sentiment: this technical indicator fully confirms our trading scenarios with all instruments, which is an excellent additional signal. As with gold, we can open new positions only after the sharp exit of the price from the local consolidation.

The best deals: GBP/USD, AUD/USD

Potentially good deals: EUR/USD, USD/JPY, USD/CAD

While out of the market: XAU/USD