Weekly Technical Forex Forecast 02-06.09.2019


EUR/USD

The Euro showed a significant and sharp drop on the huge volume, which is an excellent indicator of the strength of sellers. Given this fact, as well as the presence of a local downtrend, we should consider extremely short positions.

Sales can be opened after a small and smooth correction of the price up to get a more profitable entry point into the market. A stop loss should be set just above the beginning of a sharp fall. A potential of the deal is more than 100 points.

GBP/USD

The Pound continued correcting downwards, moreover, the fall was sharp and on the large volume. However, the price continues trading within the local range between the support 1.2052 and the resistance 1.2306.

Given all these factors, we can open new deals only after a confident and rapid exit of the price from the local range. The breakout movement should be supported by the large volume, which will be a more accurate signal for entering the market.

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

USD/JPY

The Yen continues trading within the local range between 2 strong levels. They are the support 105.12 and the resistance 107.60. Thus, our previous scenario remains relevant: we can consider new positions only after a sure exit of the price from the consolidation. Moreover, the movement should be rapid and supported by the large volume, which will be a more accurate signal for entering the market.

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

USD/CAD

The Canadian dollar continued its upward movement and is now trading near the resistance level/upper limit of the local range 1.3333. The growth was supported by the large volume, so we can consider the scenario of the breakdown of this mark, which will allow us to open long positions. The movement should be sharp and on the large volume.  A stop loss should be set just below the breakout volume bar. A potential of the deal is more than 100 points.

AUD/USD

The opposite situation with AUD/USD, as the price is trading near the support level/lower boundary of the local range 0.6714. Thus, we can consider a scenario of its breakdown, which will be a strong bearish signal. The fall should be rapid and on the large volume, which will be a more accurate signal to enter the market. A stop loss should be set just above the breakout volume bar. A potential of the deal is more than 80 points.

XAU/USD

Gold continued correcting downward on Friday and is now trading in the middle of the local range between 2 strong levels. They are the support 1493.20 and the resistance 1544.00.

Thus, we can open new positions only after a confident and sharp breakdown of one of these levels and the price exit the consolidation. Moreover, the movement should be supported by the large volume, which will be a more accurate and strong signal for entering the market.

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

The sentiment: this technical indicator fully confirms our trading scenarios with the Euro, Canadian and Australian dollars, which is an excellent additional signal. As with remaining currency pairs, we can open new positions only after a sharp exit of prices from local consolidations.

The best deal: EUR/USD

Potentially good deals: USD/CAD, AUD/USD

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

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