Weekly Technical Forex Forecast 05-09.08.2019


EUR/USD

The Euro continued correcting upwards, but the movement was on the average volume, so we can’t open long positions now. Moreover, the pair is trading below resistance level 1.1104 – 1.1114, in which the large volume is concentrated. Thus, we should give preference to sales.

Short positions can be opened after a resumption of a sharp and steady fall of the price on the large volume, which will be a more accurate signal for entering the market. A stop loss should be placed just above the resistance level. A potential of the deal is more than 100 points.

If the price breaks down the resistance level, it is better to stay out of the market.

GBP/USD

The Pound also corrected up, but is still trading near support level 1.2070. Given the presence of a strong downtrend down, we can consider a scenario of its breakdown, which will be an excellent bearish signal.

The breakout movement should be rapid and supported by the large volume, which will be a more reliable signal for entering the market. A stop loss should be set just above the breakout volume bar. A potential of the deal is more than 120 points.

USD/JPY

The Yen continued its fall, moreover, the movement was supported by the large volume, which is an excellent bearish signal. It is also worth highlighting the resistance level 107.63, in which the large volume is concentrated. Given all these factors, we should give preference to short positions. Sales can be opened after a small and smooth correction of the price up to get a more profitable entry point. A stop loss should be set a little higher than resistance. A potential of the deal is more than 110 points.

USD/CAD

The Canadian dollar corrected down after the formation of the new resistance level 1.3252. Nevertheless, the price is trading near this mark + given the presence of a local uptrend, we can consider a scenario of its breakout, which will allow us to open long positions. The movement must be confident and on the large volume, which will be a stronger signal for entering the market. A stop loss should be set just below the breakout volume bar. The potential of the deal is more than 100 points.

AUD/USD

The Australian dollar continued falling on the increased volume and is now trading near the new support level 0.6775. Thus, we can open short positions only after a confident and sharp breakdown of this mark. The drop should be supported by the large volume, which will be a more reliable signal for entering the market. A stop loss should be located just above the breakdown volume bar. The potential of the deal is more than 80 points.

XAU/USD

Gold showed a sharp growth and is now testing the resistance level/upper limit of the local range 1445.80. Given that the movement was on the large volume, we can consider a scenario of its breakdown, which will be an excellent bullish signal.

The breakdown movement should be rapid and supported by the large volume, which will insure against a false breakdown. A stop loss should be placed just below the breakout volume bar. A potential of the deal is more than 150 points.

The sentiment: this technical indicator fully confirms all our trading scenarios, which is an excellent additional signal (trading against the “crowd”).

The best deals: GBP/USD, AUD/USD

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

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