Daily Technical Forex Forecast 18.04.2017


EUR/USD

The situation for the euro has not changed due to the “thin” market, consequently, low volatility. The pair is trading in the consolidation below the resistance level 1.0681. Also it is worth noting that there is an accumulation of volume in this consolidation, so possibly big players are gaining positions and soon we will see the beginning of the local trend. But before that it is better to stay out of the market.

volume euro

GBP/USD

The pound continues trading in the consolidation near its local maximum. Unfortunately, new levels are impossible to point out because market has been thin due to the holidays. So that, there is no good entry points because we don’t have a good place for the stop loss + the potential of the deal is pretty small. For the now, I advise you not to trade this instrument.

volume gbp

USD/JPY

USD/JPY corrected to resistance level 109.21 – 109.34 and now it is trading exactly below it. It is worth noting that the price growth was on small volume, which is not surprising, given the low liquidity of the market during the holidays. Also, the level of resistance 109.67 – 109.84, in which large volume is concentrated, remains relevant.

Thus, it is too early to talk about reversal of the trend, nevertheless, it is worth waiting for a signal that will confirm that the buyers remain strong and this correction is a technical consequence of a long growth. As such a signal is a strong bearish momentum from the resistance level. A stop loss should be placed a little above this mark. The goal is a local minimum.

If the price reaches this mark, it is better to transfer the stop loss to the breakeven and expect a further fall.

If the price breaks through the level of 109.21 – 109.34, after which it tests the level of 109.67 – 109.84 and bounces down on a large volume, we can also open sales with a stop loss above the level of 109.84. The goal is the same.

sell jpy

USD/CAD

The situation for USD/CAD remains unclear, as the pair is trading in the consolidation on small volume, that makes impossible to allocate any new volumetric levels or zones. That’s why it’s better to stay out of the market for this instrument now.

cad

AUD/USD

After the smooth growth of the price, the pair sharply fell down and now is testing the level of support 0.7560 – 0.7572. So now it’s too dangerous to open long positions, because after such a move the instrument can continue its correction. So we need to wait for a signal that will tell us that the correction is over. It is a strong bullish momentum on large volume with further growth of the price, especially from the support level. A stop loss should be placed below the level or the beginning of the sharp growth. The global target is 0.7670.

buy aud

If the correction continues and the price falls down further, it’s better to stay out of the market.

XAU/USD

Gold opened with a gap after the weekend, but failed to grow up further. Instead of this the price stated correcting down and now is testing the support level 1281.00 – 1283.20. The fall was on small volume, so it should not be considered as a reverse of the market.

volume gold

But given the entire situation on the market, it’s better to wait for the resuming of the growth on large volume which will a great signal for opening long positions. A stop loss should be set below the support level of the beginning of the growth. A potential of the deal is around 130-150 pips.

buy gold

The sentiment: our deals for the yen, the Australian dollar and gold are confirmed by the mood of the market. But all of them should be opened only after the confirmational signals.

sentiment

 

The bottom line: the overall situation on the market is quite complicated because many instrument has either corrections, or consolidations. So we should be very careful while opening any deals.