Daily Technical Forex Forecast 25.08.2017


EUR/USD

The general situation for EUR/USD remains the same – the pair is trading in the global consolidation. Volume on the market is very low, so we can’t point out any new volume levels or zones.

So that our scenario remains the same too – wait for the confident breakout of the boundaries of the consolidation and only then we can consider opening any deals. Until that it is advisable to stay out of the market.

trade euro

GBP/USD

After the breakdown of the support level, GBP/USD began trading in the small local consolidation just below this mark. It should be noted that volume on the market is very small, so it is not possible to point out a new level or zone.
Nevertheless, there is a large accumulation of volume in the top of the chart + a strong downward trend, so that it is worth giving preference to short positions on the pound.

volume gbp tfxi

We can open sales after the resumption of the fall on large volume. Ideally, this is a strong bearish impulse down and after a small correction we can enter the market. A stop loss should be placed just above the upper limit of the local consolidation 1.2838. The potential of the deal is about 100-110 points.

sell gbp

USD/JPY

The price grew up yesterday, but the move was almost without volume, so it should not be considered as a reversal signal. In general, USD/JPY is trading near the middle of the range between two strong volume levels: the resistance 110.92 and the support 108.63 – 108.71.

So that the best scenario will be waiting for the breakout of the boundaries of the consolidation which will be a great signal for trading. After that we can trade this currency pair. A breakout move should be sharp and on increased volume, it is must conditions.

volume jpy

USD/CAD

The pair has broken down the support level which is a good bearish signal. But unfortunately, the move was smooth and on average volume, so we need to obtain an additional signal to be able to open short positions. Such a signal will be a strong bearish momentum either from the current level or after a smooth upward correction. A stop loss should be placed above the beginning of the fall. A potential of the deal is 100 pips.

sell cad

AUD/USD

The price had tested the support level 0.7880 yesterday, but then returned trading back into the consolidation. Also it should be noted that volume on the market is very low, which makes considering scenarios for the currency pair even more difficult.

That’s why the best decision will be just stay out of the market until the breakout of the boundaries of the range. The breakout move should be sharp and supported by large volume.

trade aud

XAU/USD

Nothing has changed for gold as the price is still trading in the local consolidation which is inside the global one. The support level 1267.70 – 1269.90 and the resistance 1296.30 – 1300.50 remain relevant. Volume on the market is above average, but due to the range, we can’t point out any new levels or zones.

volume gold

That’s why our previous trading scenario for this instrument remains the same, we should wait for the breakout of the boundaries of the global consolidation and only after that we can consider opening any deals.

The sentiment: our scenarios for GBP/USD and USD/CAD are confirmed by the mood of the market. For all other instrument this indicators is a bit useless as they are in ranges.

sentiment

The bottom line: generally, the situation on the market is a bit tough, though we have 2 interesting scenarios for the pound and the Canadian dollar. So I advise you to be extremely careful today and wait for good confirming signals.