Daily Technical Forex Forecast 03.01.2018

EUR/USD

The Euro is trading in the little local consolidation below the new resistance level 1.2076, which was created yesterday. The level contains increased volume and stopped the growth of the price. On the other hand, there is a strong uptrend with EUR/USD and the price is located a bit lower this level, so that we can consider the scenario of its breakout. It will be a good bullish signal for us.

The breakout movement must be abrupt and supported by large volume, so it will insure us from fake breakouts + it will be a more accurate signal for entering the market. A stop loss should be place below the breakout volume bar. A potential of the deal is more than 100 pips.

GBP/USD

The Pound has finally broken out the resistance level/upper boundary of the range, which is a great bullish signal. The breakout move was sharp, but on medium volume, so we can’t point out any new specific volume level. Anyway, given the confident growth and the exit of the price from the consolidation, we should give preference to long positions.

We can enter the market after a little smooth correction of the price down, in order to get a better entry point. A stop loss should be placed below the breakout bullish impulse. A potential of the deal is around 100-110 pips.

USD/JPY

The Yen fell down and tested the level of support/lower limit of the local consolidation 112.08. The price is located near this level. Given this fact and the previous sharp fall, we can regard the scenario of its breakout, which will allow us to open short positions. The move must be keen and supported by large volume, so it will be a stronger and more reliable signal for entering the market. A stop loss should be placed above the breakdown volume bar. A potential of the deal is 90-100 pips.

USD/CAD

The price tested the support, broke it down, but failed to continue falling and is located near the local minimum now. So that we still should give preference to short positions. We can enter the market after a resumption of the sharp and sure fall of the price and a breakdown of the minimum. A stop loss should be placed above the beginning of the confident fall. A potential of the deal is 80-90 pips.

AUD/USD

The price showed a smooth correction and is trading a little bit below the local maximum. The fall of the price was on small volume, while the growth was on increased one. That’s why we still should give advantage to long positions. We can enter the market after a resumption of the confident growth of the price and the breakout of the maximum. A stop loss should be placed below the beginning of the growth. A potential of the deal is 50 pips.

XAU/USD

We should point out the new support level here. It is 1311.40 – 1313.90. As can be seen from the chart below, rather large volume is concentrated within this level. Also we should notice that the price corrected down and is testing this level at the moment. The fall was on small volume, so we can’t regard it as a reversal signal.

Moreover, given the strong uptrend, we should consider exceptionally long positions with gold. We can enter the market after a resumption of the growth of the price from the support level. A stop loss should be placed below this mark with a little margin. A potential of the deal is up to 150 pips.

The sentiment: at the moment this indicator confirms all our scenarios which is a great additional signal that they will be executed.

The bottom line: the situation on the market is quite interesting for trading, as there are scenarios for all currency pairs and gold.

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