Daily Technical Forex Forecast 02.01.2018

EUR/USD

The uptrend with the Euro continued, so we still should give preference to long positions. Also we should note that despite the growth of the price was on increased volume, we can’t point out any new volume levels, as it is spread throughout the chart.

That’s why we can open long positions only after the appearance of additional signal – strong bullish impulse on increased/large volume. A stop loss should be placed below the abrupt growth. A potential of the deal is 80-90 pips.

GBP/USD

The Pound grew up and tested the resistance/upper boundary of the consolidation 1.3544. The pair is located a little bit below this level, so we can consider the scenario of the breakout of this level. Given the presence of large volume accumulation within this range, such move will be a great bullish signal.

The breakout movement must be abrupt, sharp and supported by increased/large volume, so it will be a more reliable signal for entering the market. A stop loss should be placed below the breakout volume bar. A potential of the deal is around 110 pips.

USD/JPY

The Yen is still located in the local consolidation between two strong volume level: 112.08 and 113.65, so our previous scenario remains the same: we can trade this currency pair only after a confident exit of the price from the range. The move must be keen and sharp, so it will be a more accurate signal.

USD/CAD

We should point out the new support level 1.2520, where increased volume is concentrated and which stopped the fall of the price. That’s why we can consider short positions only after a sure breakdown of this range. The movement must be strong and confident. A stop loss should be placed above the beginning of the breakdown move. A potential of the deal is 80-90 pips.

AUD/USD

Nothing has changed here as the price continued its growth so the uptrend with AUD/USD is going on. In such case we should regard exceptionally long positions. We can enter the market after the appearance of additional signal – bullish impulse, as there is no significant volume level. The momentum must be sharp and sure. A stop loss should be placed below the beginning of the growth. A potential of the deal is 60 pips.

XAU/USD

The uptrend with gold continued, but now the price is stopped by the new resistance level 1307.70. As can be seen from the chart below, this level contains large volume. On the other hand, the price is testing it at the moment, so we can consider the scenario of its breakout, which will allow us to open long positions.

The breakout movement must be abrupt and supported by large volume in order to avoid fake breakout. Moreover, it will be a more reliable and accurate signal for entering the market. A stop loss should be placed below the breakout volume bar. A potential of the deal is 130 pips.

The sentiment: this indicator confirms all our trading scenarios, except USD/JPY, which is locked in the local consolidation. This is a good additional signal for us.

The bottom line: the situation on the market is pretty good for active trading, but we have to wait for acceptable entry points to be able to open new deals.

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