Weekly Technical Forex Forecast 07-11.01.2019


EUR/USD

The Euro goes on trading inside the local range between 2 strong volume levels. The first one is the support 1.1267, the second one is the resistance 1.1463. Besides it, the large volume is concentrated within this consolidation.

Considering all these factors, we can regard new positions only after the confident and sharp exit of the price from this consolidation. The breakout move must be supported by the large volume, which will be a more precise and secure signal for entering the market.

GBP/USD

The Pound showed a significant and sharp surge of the price on Friday. Now the pair is testing the resistance level/upper limit of the local range 1.2750. Given that the upward movement was on the large volume, we can consider a scenario of the breakout of this mark, which will be an excellent bullish signal and allow us to open long positions with the Pound.

The breakout movement must be confident and supported by the large volume, which will be a more accurate and strong signal to enter the market. A stop loss should be placed slightly below the breakout volume bar. The potential of the deal is about 130 points.

USD/JPY

The Yen carried on rising and the pair is currently locked in the middle of the local range between 2 strong levels. They are the support 107.28 and the resistance 109.46. Hence, the best decision with this instrument is just to wait for the sure and keen exit of the price from this consolidation. The move must be supported by the large volume, which will be a more reliable signal for entering the market and will insure us against a fake breakout.

USD/CAD

The Canadian dollar indicated a sharp sink on the large volume on Friday, which is a great bearish signal. So we should give advantage to short positions with this pair at the moment. We can enter the market after a smooth upward correction of the price, in order to get a more profitable entry point. A stop loss should be placed above the beginning of the sharp fall. A potential of the deal is around 120 points.

AUD/USD

The Australian dollar showed an abrupt growth and broke out the previous resistance level. The surge was supported by the large volume, which is a great bullish signal. Thus, we should give preference to long positions. We can enter the market after a smooth downward correction of the price, in order to obtain a better entry point. A stop loss should be placed below the breakout volume bar. A potential of the deal is more than 80 points.

XAU/USD

The price corrected down sharply and on the large volume, but the move was stopped by the formation of the new support level 1277.00. Besides it, there is a global uptrend with gold, hence, we still should give a slight preference to long positions.

Purchases can be opened only after a resumption of the sharp growth, but the surge should be supported by the large volume, which will be a more secure signal for entering the market. A stop loss should be placed below the support level. A potential of the deal is around 130-140 points.

The sentiment: the mood of the market affirms our trading scenarios with the Pound, Canadian dollar and gold, which is a nice additional signal. As with the Australian dollar, the situation is contradictory, thus, we should be more careful. As with other currency pairs, we should wait for the exit of prices from consolidation and only after that we can consider new deals.