Weekly Technical Forex Forecast 26-30.08.2019


EUR/USD

The Euro showed a significant growth on the large volume, which is an excellent bullish signal. At the moment, the pair is trading near the resistance level 1.1152. Thus, we can consider a scenario of the breakdown of this mark, which will allow us to open long positions with this currency pair.

The breakout movement must be confident, rapid and supported by the large volume, which will be a more accurate signal for entering the market. A stop loss should be set just below the breakout volume bar. A potential of the deal is about 100 points.

GBP/USD

The Pound continued its growth and broke out the previous resistance level, which is an excellent bullish signal. Moreover, the movement was on the large volume, which only strengthens its importance. It is also necessary to highlight a new support level 1.2200. Given all these factors, it is worth giving preference to long positions.

Purchases can be opened after a small and smooth correction of the price down, in order to get a more profitable entry point into the market. A stop loss should be set just below the support level. A potential of the deal is more than 120 points.

USD/JPY

The Yen showed a sharp and rapid drop on the large volume, which is an excellent bearish signal. At the moment, the pair is trading near the support level/local minimum 105.12. Thus, we can open short positions only after a confident breakdown of this mark. The movement should be supported by the large volume, which will be a more accurate signal for entering the market. A stop loss should be placed just above the breakout volume bar. A potential of the deal is more than 100 points.

USD/CAD

The Canadian dollar tested the resistance level 1.3333, and then sharply adjusted down. Now the pair is trading within the local range between this mark and the support level 1.3256. Given these factors, we should open new positions only after a sharp exit of the price from the consolidation. Moreover, the breakdown movement should be supported by the large volume, which will be a more reliable signal for entering the market.

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

AUD/USD

The Australian dollar rose up sharply, but after that immediately showed a steady decline. The price completely absorbed the upward movement, which is an excellent bearish signal. Now the pair is trading near the new support level 0.6740. Thus, we can open short positions only after a rapid fall and breakdown of this level. The movement should be supported by the large volume. A stop loss should be located just above the breakout volume bar. A potential of the deal is more than 80 points.

XAU/USD

Gold showed a sharp and confident growth of the price on the large volume, which is an excellent bullish signal. The pair is currently testing the resistance level 1526.90. Thus, we can open long positions only after a sharp breakdown of this mark.

The breakdown movement must be confident and rapid, and also supported by the large volume, which will be a more accurate signal for entering the market. A stop loss should be set just below the breakout volume bar. A potential of the deal is more than 300 points.

The sentiment: this technical indicator fully confirms our trading scenarios with all instruments, except the Pound. Thus, we should be extremely careful trading this currency pair. As with USD/CAD, we need to wait for a confident exit of the price from the consolidation.

The best deals: EUR/USD, USD/JPY, AUD/USD, XAU/USD

Potentially good deal: GBP/USD

While out of the market: USD/CAD

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