Daily Technical Forex Forecast 23.05.2017


EUR/USD

The euro continued growing and is trading near a fresh maximum now. Unfortunately, the move up was without large volume, so new levels are impossible to point out and we do not have a good place for a stop loss. Besides it, the possibility of the correction after such a sharp growth is pretty high.

So long positions are still in priority for EUR/USD, but there is no a good situation for trading now. That’s why I advise to stay out of the market until the appearance of new volume levels that can be used in trading the euro.

volume euro

GBP/USD

After one more test of the level of resistance 1.3040, the pair rebounded back and is trading in the consolidation now. The level 1.3040 remains our cornerstone for trading the pound as it is a higher boundary of the consolidation.

volume gbp

So our previous scenario is still actual: open long positions after a confident breakout of the level 1.3040 on large volume. The price should be fixed above it that will insure us from fake moves. A stop loss should be placed below the breakout volume bar. A potential of the growth is around 120 pips.

buy gbp

USD/JPY

The yen is still trading in the consolidation under the level of resistance 111.70 – 111.90, which is a cornerstone for trading USD/JPY as contains pretty large volume.

So our previous scenario remains the same: after a resumption of the fall on increased volume we enter the market and open short positions. It will be good if the price corrects up before the fall, so we will obtain a better entry point. A stop loss should be set above the resistance. A potential of the deal is around 100-110 pips.

sell jpy

USD/CAD

USD/CAD continued falling after the breakdown of the support. The price fall was on small volume, so we can’t highlight any news level that can be used as a good place for putting a stop loss.

So the only possible scenario for trading the Canadian dollar is opening short positions after a smooth correction of the price. A stop loss should be place above the level 1.3600. A potential of the deal is around 100 pips.

sell cad

AUD/USD

The uptrend for the Australian dollar continues as the price broke out the previous local maximum. The growth of the price was and is on small volume, so unfortunately, we can’t point out fresh levels or zones.

Anyway, long positions should be in priority due to the strong uptrend. We can enter the market after a smooth correction of the price and a creation of a new volume support level. A stop loss should placed below the fresh level, a potential of the deal is only 50-60 pips.

buy aud

XAU/USD

Gold continued its upward movement and broke through the resistance level 1257.00 – 1260.20. Unfortunately, the breakout was smooth and on an average volume, which does not allow to open long positions on gold at the moment.

Nevertheless, the very upward movement is a good indicator for the continuation of the upward trend for the pair XAU/USD. Also it is worth noting that the price is trading above the local volumetric accumulation, which also confirms our scenario of opening long positions on gold.

volume gold

As already mentioned above, now we can not enter the market, as there is no a good place for a stop loss. Therefore, it is worthwhile to open longs after the beginning of a volumetric price growth, which will be a good signal for entry. A stop loss should be set below the level 1257.00, in which increased volume was concentrated on Monday. The potential of a growth is about 150 points.

buy gold

The bottom line: gold and the yen have good situations for trading now. The pound is also interesting instrument if the price breaks out the resistance. We also have scenarios for CAD and AUD, but there are no good places for putting stop losses. If we obtain them, these instruments also can be traded.