Daily Technical Forex Forecast 20.04.2017


EUR/USD

After the strong growth of the price, the euro corrected to the level of support 1.0686 – 1.0700. The downward movement was on small volume, so our previous scenario of opening long positions is still actual. Besides it, there is a local uptrend for EUR/USD.

volume euro

We can enter the market after the rebound of the price from this level on increased volume, which will be a great bullish signal. A stop loss should be placed below the support level. A potential of the deal is around 90-100 pips.

buy euro

If the euro goes down further, it’s better to stay out of the market.

GBP/USD

The growth of the pound because of fundamental factors was replaced by a smooth correction of the price to the support level 1.2745 – 1.2773, in which quite large volume is concentrated. Also worth noting that the price movement was sharp and on very large volume. In addition, it is necessary to allocate 2 more support levels: global 1.2525 – 1.2543, in case of its breakdown, the scenario of long positions will be canceled, and the local 1.2657 – 1.2676, which was formed during the price growth.

volume gbp

But the most interesting for us now is the freshest volumetric level 1.2745 – 1.2773, near which the GBP/USD pair is trading. From this level we should look for the possibility of opening purchases (after such a strong growth, selling is not the best idea). We can open long positions after a sharp rebound of the price from this mark on large volume. A stop loss must be placed below the support level 1.2745. The goal is a local maximum. The risk/profit ratio is approximately 1 to 2, which is acceptable for trading.

buy gbp

USD/JPY

The yen is trading in the consolidation below the level of resistance 109.21 – 109.34. The pair has been trading on small volume for last few days, so we can’t highlight any new volumetric levels or zones. There are no signs of new sellers, so the further fall of the price is under the question. That’s why it’s better to wait for new impulses to be able to open new deals.

So now we should stay out of the market.

jpy

USD/CAD

The Canadian dollar continue trading in the global consolidation. Yes, the price is growing now, but this move is on small volume, so we can’t point out any new levels that can be used for the trading this pair.

My advice for today is to skip USD/CAD from the trading plan until the situation becomes clearer.

cad

AUD/USD

AUD/USD has broken down the level of support, so now we should regard opening short positions. Unfortunately, we can’t enter the market at this moment, because the breakout was on small volume. Short positions can be opened after the breakdown of the local minimum 0.7476 on large volume. A stop loss must be set above the breakout volumetric bar. A potential of the deal is about 80-90 pips.

sell aud

XAU/USD

Gold showed the fake breakdown of the support and rebounded back on large volume. We need to highlight the new support level 1276.80 – 1279.00, which was created during that move. All these facts tell us that bears have enough power to hold the price, that’s why until the breakdown of this level we can’t consider short positions.

volume gold

So now the best option is to search a good point for opening long positions. We can enter the market after the bullish momentum from the new support. A stop loss should be placed below the level 1276.80 – 1279.00. The target is the local maximum.

buy gold

The sentiment: all our main scenarios are confirmed by the mood of the market.

sentiment

The bottom line: the pound and gold have the best situations for trading now.