Daily Technical Forex Forecast 18.08.2017


EUR/USD

The Euro tested the lower boundary of the consolidation one more time and rebounded up sharply. It is necessary to point out the new level of support 1.1668, which contains large volume. Also we need to highlight that this level is located in the pin bar, after which the price grew up strongly.

volume euro

So the entire situation remains the same: the price is trading in the consolidation and we can consider opening any new deals only after the confident breakout of the boundaries of the range with further fixation of the price below/above them.

GBP/USD

GBP/USD continues trading in the local consolidation just above the volume support level 1.2959. Large volume is concentrated in this accumulation, so the exit of the price from this flat will be an excellent signal for entering the market. Given the downward trend for the pound, it is worth giving preference to short positions.

volume gbp tfxi

We can open sales only after a sharp and sure breakdown of the support level 1.2959 and a fixation of the price below it. The breakdown movement must be on large volume to protect us from false breakdown. A stop loss should be placed just above the breakdown volume bar. The potential of the deal is about 120-130 points.

sell gbp tfxi

USD/JPY

USD/JPY continued falling, moreover the move was pretty sharp and supported by really large volume. But overall, the situation remained unchanged – the Yen is trading in the middle of the consolidation between two levels: support 108.80 and resistance 110.92. So the scenario is very simple: we need to wait for the exit of the price from this range and then we can regard the possibility of opening new deal. The breakout should be supported by large volume, so it will be a more accurate signal.

volume jpy

USD/CAD

USD/CAD has tested the level of resistance 1.2675 and now is trading near this level. Growth of the price was on average volume, so our previous scenario is still actual: after the resumption of the strong fall on large volume we can consider short positions. A stop loss should be placed above the test. The target is 1.2560.

As for long positions, they can be opened only if the price breaks the resistance and the local maximum.

sell cad

AUD/USD

After the test of the support level 0.7880, the pair rebounded up and is trading near this level at the moment. Despite that the fall was pretty abrupt, it was on small volume, so we still can consider long positions if the price shows strong bullish impulse from the support level. A stop loss should be placed below the level of support. A potential of the deal is around 60-70 pips.

buy aud

XAU/USD

Gold was trading in the local consolidation a little bit below the resistance level 1291.10 yesterday. Overall, the price is locked in the global range between the resistance and the support 1267.70 – 1269.90, so we can trade this instrument only after the exit of the price from it. Given the strong growth and trading near the resistance, it is more likely that the pair will go up.

volume gold

That’s why we should open long positions after the strong breakout of the resistance 1291.10 on large volume to protect ourselves from fake movements. A stop loss should be placed below the breakout volume bar. A potential of the deal is around 130 pips.

buy gold

The sentiment: 4 of our scenarios are confirmed by the mood of the market. For the Euro long positions should be in priority, while for the yen – short positions.

sentiment

The bottom line: the situation on the market is quite tough , so we need to wait for strong confirming signals to be able to consider new deals.