Daily Technical Forex Forecast 05.12.2017

EUR/USD

The Euro has tested the lower boundary of the local consolidation 1.1829 but failed to break it down and remained located in the range. Also we need to note the upper limit of this consolidation, it is the resistance 1.1929. Besides it, large volume accumulation is located in this consolidation.

That’s why the best decision will be waiting for the exit of the price from the range. The breakout movement should be abrupt and supported by large volume, so it will be a stronger and more accurate signal for entering the market.

Until that it is better to stay out of the market.

GBP/USD

GBP/USD tested the resistance level 1.3544 after which it showed a rapid fall and tested the support 1.3391 – 1.3417. However, the price could not break the lower level and remained trading in this local consolidation between these two levels. It is worth noting the presence of significant volume in this range, so the best scenario will be to wait for the breakout of one of the levels and the exit of the price from the consolidation.

The breakout movement must be sharp and swift + on increased/large volume, which will be a more accurate and reliable signal for entering the market.

Given the local upward trend, purchases still look more promising.

While the price is in the local range, it is better to stay out of the market.

USD/JPY

The price opened with a huge gap and broke out the resistance level, so that we should give preference to long positions. We can enter the market after a breakout of the local maximum. The movement should be abrupt and confident. A stop loss should be placed below the breakout bar. A potential of the deal is more than 130-140 points.

USD/CAD

The pair is trading below the resistance level 1.2732 – 1.2768, where large volume is concentrated. So that our previous scenario remains the same: we should give preference to short positions. We can enter the market after a smooth upward correction in order to get a better entry point. A stop loss should be placed above the resistance. A potential of the deal is more than 150 points.

AUD/USD

The Australian dollar grew up strongly yesterday and tested the resistance level 0.7649. The price is located a little bit below this mark at the moment, so we may consider the scenario of its breakout, which will be a great bullish signal and we will be able to open long positions.

Purchases can be opened after the sure and sharp breakout of the resistance on large volume. A stop loss should be placed below the breakout volume bar. A potential of the deal is around 60 points.

XAU/USD

The price opened with a huge gap yesterday, but is still locked in the global consolidation between two strong volume levels: the support 1264.40 – 1266.00 and the resistance 1299.00. Large volume is concentrated in this range, so the best decision for this instrument is to wait for the breakout of the boundaries of the consolidation.

The breakout movement must be sharp and keen + supported by large volume in order to avoid any false moves. Besides it, such a signal will be more reliable and accurate.

While the price is still located in the consolidation, we should stay out of the market as it is too risky to trade inside the range.

The sentiment: this indicator confirms our scenarios for USD/JPY and USD/CAD. For all other instruments we need to get wait for breakouts of volume levels in order to be able to consider new positions.

The bottom line: the situation on the market is quite tough as many instruments are in consolidation, but still we have a couple of interesting scenarios – USD/JPY and USD/CAD.

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