Weekly Technical Forex Forecast 26-30.03.2018

EUR/USD

The Euro resumed its growth after a sharp correction of the price down. Nevertheless, the upward movement was on the small volume, so we cannot consider long positions from the current level. Nevertheless, given the previous rapid rise on the large volume, we should give preference to long positions.

Purchases can be opened after the price continues to grow and surely breaks down the resistance level of 1.2411 – 1.2426. The breakout movement must be sharp and supported by the large volume, which will be a more accurate signal for entering the market. A stop loss should be placed under the breakout volume bar. The potential of the deal is 120-130 points.

GBP/USD

The Pound continued its growth, but the pair is still trading just below the local maximum + the movement was on  the average volume. Also it is worth noting the support level of 1.4057, in which the large volume is concentrated + from this level the price began its sharp growth. Therefore, before its breakdown, we should give preference to purchases with this instrument.

Long positions can be opened after a resumption of price growth and a breakdown of the local maximum. A stop loss must be placed under the breakout bar. The potential of the deal is more than 150 points.

USD/JPY

The strong downtrend continues with the Yen, so now it is worth considering exceptionally short positions with this pair. Moreover, the price decline was on the large volume last week, which is also an excellent bearish signal.
Sales can be opened after a small correction of the price up, to get a more advantageous entry point. A stop loss should be placed a little above the Friday’s maximum. The potential of the deal is more than 100 points.

USD/CAD

The Canadian dollar tested the lower border of the consolidation/support level of 1.2418, but could not break it, and then it adjusted upwards. Thus, the price is still locked in the local consolidation between this mark and the resistance of 1.3100. Therefore, the best solution is to wait for a confident and sharp exit of a pair from this range on the large volume, which will be a more accurate signal for entering the market.

AUD/USD

The Australian dollar resumed its decline and now the price is trading near the support level of 0.7680. This mark is the cornerstone in trading of this instrument, since it is also a local minimum and has already been tested several times.
It is necessary to consider 2 trading scenarios from this level:
1. A test of the support and a sharp price rebound up on the large volume. In this case, we can consider the scenario of opening long positions.
2. A continuation of the drop and a breakdown of the support level on the large volume, which will be an excellent bearish signal and allow us to open short positions.

XAU/USD

Gold continued growing, moreover, the movement was on the large volume, which is an excellent bullish signal. Unfortunately, the volume was evenly spread throughout the chart. Despite this, it is worth considering exceptionally long positions with this instrument.

Purchases can be opened after the breakdown of the local maximum. The breakout movement must be sharp and supported by an increased volume, which will be a more reliable signal for entering the market. A stop loss should be placed under the breakout volume bar. The potential of the deal is 120-130 points.

The sentiment: this indicator confirms all of our trading scenarios (purchases with the Euro, Pound, gold and sales with the Yen), which is an excellent additional signal.

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