Daily Technical Forex Forecast 04.04.2017


EUR/USD

The euro continued its smooth fall and now is trading below its level of resistance 1.0695. It is worth noting that the fall of the price was on increased volume which tells us that this instrument most probably will go down further.

volume euro

That’s why we should consider only short positions for the euro. We can enter the market from the current level, but still there is a possibility of a little correction of the price up, so the stop loss should be set above the level 1.0755, it is the safest place for it. So it’s better to wait for a smooth correction of the price to the level 1.0695 and after the resuming of the fall open short positions. In such case we get more profitable risk/profit ratio, which is pretty important in successful trading. A potential of the fall is around 100-110 pips.

sell euro

GBP/USD

The pound has broken down its level of support and now is trading in the local consolidation. Unfortunately, it’s impossible to highlight any new volumetric levels, because volume is spread across the chart.

volume gbp

So that, there is no good place for putting stop loss and it makes trading this instrument pretty difficult. My advice is just to stay out of the market for the pound and watch for further moves of the price and creation of new important levels from which we can open deals.

gbp

USD/JPY

The yen has broken down the level of support on pretty large volume, which mean that buyer don’t have power to uphold the price. Also we need to highlight the new level of resistance 110.95 – 111.08 where huge volume is concentrated. So that we need to consider opening short positions from this level. We can enter the market after a smooth correction of the price to this level. A stop loss should be placed at the level 111.40. A potential of the price is about 110-120 pips.

sell jpy

USD/CAD

USD/CAD has grown up and now is testing the resistance level 1.3387 – 1.3404 on very large volume. It is worth noting that the growth of the price was sharp, so the possibility of the breakout of the resistance is pretty high. Long positions should be opened only after the breakout of this level on increased volume with further move of the price up. A stop loss should be placed below the breakout volumetric bar. The target is 1.3525.

buy cad

AUD/USD

AUD/USD has broken down its support 0.7610 but failed to continue its fall and now is testing the local minimum. Despite of this fact, it’s not a good idea to sell this instrument, because the global situation shows the growth of the US dollar, so the possibility of returning of the price to the consolidation is very high. The best choice is just to skip this instrument and trade currency pairs which have better situations.

aud

XAU/USD

After the support level test, gold continued its growth and is currently trading near the resistance level and the local maximum of 1260.00. It is important to note that the price growth was on large volume and the movement were sharp, impulsive. Thus, the probability of continuation of the uptrend and breakdown of the resistance level is high.

volume gold

Long positions can be opened after the breakout of the resistance level 1260.00 on large volume with further fixation of the price above this mark. After stoppage of the price/small correction after the breakout movement, you can enter the market and open purchases for gold. Stop loss should be set under the level from which the breakout movement began. The potential of the deal is about 150 points. The risk/profit ratio for this deal is at least 1 to 2, which makes it quite profitable for trading.

buy gold

The sentiment: the mood of the market confirms our deals for EUR/USD, USD/JPY, USD/CAD and gold. Other instruments are better to be skipped.

sentiment

The bottom line: we have good situations for trading for 4 instruments: EUR/USD, GBP/USD, USD/CAD, gold.