Daily Technical Forex Forecast 07.04.2017


EUR/USD

The euro is still trading in the consolidation below the level of resistance 1.0695, but now the price is testing the lower boundary of this range. Also we need to note a strong bearish volumetric momentum that was on Thursday, that is the signal for us that the pair is willing to go down further.

volume euro

As can be seen from the chart about, there is a large accumulation of volume inside this consolidation, so the exit of the price from it will be a great signal for entering the market. Of course, given the strong downtrend short positions are in priority. We can open deals after the breakdown of the local minimum on increased volume with further fixation of the price below it. A stop loss should be set above the consolidation. The target is 1.0550. After the price reaches it, it’s better to move a stop loss to the breakeven and hold the position until the appearance of the reversal signal (bullish momentum on increased volume).

sell euro

GBP/USD

The satiation for the pound has been being the same for few days: the pair is trading in the consolidation on small volume, so it’s impossible to highlight any new levels or zones which can be used for trading this instrument.

volume gbp

It seems like big players are gaining positions in this consolidation and getting ready to start a new local trend, so after the breakout of this range, most possible, we will see a strong move. But until that it’s better to stay out of the market for the pound.

USD/JPY

For the yen we need to highlight a new level of resistance 110.17 which is also a local minimum. Also it is necessary to point out the strong volumetric bearish momentum created after the news about Syria, but even it failed to breakdown the resistance. So our previous scenario for opening short positions is actual, but we can reopen (in case you have not opened it yet) sale after the breakdown of this level. A stop loss should be set 110.60. A potential of the deal is around 100 pips.

sell jpy

USD/CAD

USD/CAD failed to continue growing and now is trading above its level of support 1.3387 – 1.3400. Also it is worth noting that the oil price resumed its growth, so the situation for this currency pair is puzzled., but long positions are in priority until the breakdown of the support.

We can enter the market after the strong rebound of the price from the level 1.3387 – 1.3400 on large volume which will tell us that buyers have enough power to push the pair up. A stop loss should be set below the support level. A potential of the deal is around 100-110 pips.

buy cad

AUD/USD

Our previous scenario of opening short positions for AUD/USD was executed and now the pair is trading near our target 0.7500. The price is going down confidently and on increased volume, so it seems that a fall will continue, but now, unfortunately, there is no good point to enter the market, so if you are not in the market now, it’s better to skip this instrument from trading.

aud

XAU/USD

After the statements of Donald Trump about the need to make a missile strike on Syria, the US dollar quite strongly dipped against gold, the asset growth was more than 150 points. During this impulse movement, which was accompanied by very large volume, as well as a large ask delta (the buyers’ dominance), the new volume support level 1260.00 – 1262.00 was formed.

It should also be noted that, as a result of this growth, the pair XAU/USD has confidently risen from its global consolidation, which only increases the likelihood of the continuation of the uptrend.

volume gold

Therefore, now it is necessary to work exclusively from purchases. Long positions should be opened after a smooth correction of the price to the fresh level of support, in order to obtain a more advantageous entry point. This movement should be on a small scale and without sudden jumps. A stop loss should be placed under the level of 1255.00. A potential of the deal is about 150 points.

buy gold

The sentiment: the mood of the market confirms all our scenarios. The situation for the pound is around 50/50 which is not strange, because the pair is trading in the consolidation.

sentiment

Important! Today at 13.30 GMT payrolls will be realesed, so you should be extremely cautious in trading dollar tools. Before the news it is advisable to either get out of positions, or remove stop losses into the breakeven to protect yourself from sudden market movements.