Weekly Technical Forex Forecast 13-17.11.2017
EUR/USD
EUR/USD continued its smooth growth on small volume, but the price is still located in the consolidation 1.1578 – 1.1677. As can be seen from the volume chart below, in this range large volume is concentrated, so it can be assumed that large players are gaining positions there.
Thus, the best solution is to wait for the price to exit from the consolidation, but considering the fact that now the pair is trading near the resistance, we can consider the scenario of opening long positions after the breakout of this mark. A stop loss should placed under the breakout bar. The potential of the deal is 130 points.
GBP/USD
The pound is also trading in the global consolidation, in which very large volume is concentrated, which gives us the opportunity to assume about the set of positions by market makers. Therefore, the best option is to wait for the price to come out of this range.
The breakout movement must be sharp and on large volume, which will be a more accurate and strong signal for entering the market.
While the price is in the consolidation, it is worth staying out of the market.
USD/JPY
USD/JPY is trading near the support level 113.11 – 113.26, in which fairly large volume is concentrated. If you look at the picture more globally, then we may note that this currency pair is located in the consolidation, where large volume is concentrated.
Nevertheless, given the fact that the price is trading near the lower boundary of the consolidation, it is worth considering the scenario of breakout of this level and the opening of sales. The breakout movement must be sharp and on increased volume. A stop loss should be placed just above the breakdown volume bar. The potential of the deal is more than 120 points.
USD/CAD
After the breakdown of the local minimum, the price began trading in the local consolidation, in which a fairly significant volume is concentrated. Therefore, we should open sales after the resumption of the fall of the price on increased volume.
After the breakdown of the lower boundary of the local consolidation, we can open short positions. A stop loss should be placed a little above the local range. The potential of the deal is 160-170 points.
AUD/USD
Nothing has changed for the Australian dollar – the price is still locked in the global consolidation 0.7634 – 0.7720. It should be noted that there is a large volume accumulation in this range.
Thus, we should trade this currency pair only after the breakdown of one of the boundaries of the consolidation. A breakout movement should be sharp and on increased volume.
XAU/USD
Gold showed a rapid fall of the price on Friday, however, this instrument is still trading in the global consolidation between two levels: the support 1264.40 – 1266.00 and the resistance 1287.70. In this range, large volume is concentrated, so the best scenario is to wait for the price to come out of the consolidation.
The breakout movement must be sharp and on increased volume, which will be a more accurate and strong signal for entering the market. While the price is locked in this range, it is better to be out of the market.
The sentiment: this indicator confirms our deals for the euro and the Canadian dollar. For other instruments, this indicator does not play a significant role, since they are in consolidations.
The bottom line: the situation on the market is pretty tough as almost all currency pairs are located in ranges, so that we need to wait for appearance of additional signals.
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