Daily Technical Forex Forecast 04.01.2018


EUR/USD

The Euro continued its downward correction, but the downward movement was on small volume, so we can’t consider it as a reversal signal. Moreover, there is a strong uptrend with this currency pair, so long positions should be still in priority. Also we need to point out the resistance level 1.2076, which remains actual.

volume euro

Given all the factors above, we are able to open purchases after the resumption of the growth of the price and the confident breakout of the level of resistance. A stop loss should be placed below a breakout bar. A potential of the deal is more than 100 pips.

buy euro

GBP/USD

The price showed an abrupt fall yesterday, but this move was stopped by the new level of support, which contains large volume. It is the level 1.3498 – 1.3513. Also we need to point out that the fall was on small/average volume, so at the moment we can’t regard it as a reversal signal and given the previous exit of the price from the range, we should give preference to long positions.

volume gbp

We can enter the market after the resumption of the sharp growth of the price from the level of support. The movement must be strong and supported by increased volume, which will be a more accurate signal for opening purchases. A stop loss should be placed below the support. The potential of the deal is 120-130 pips.

buy gbp

USD/JPY

The Yen grew up and is located near the middle of the local consolidation again. In such case the best decision will be just to wait for the exit of the price from the range. The movement must be sharp and supported by large volume, in order to avoid fake breakouts.

While the price is locked within the range, we should stay out of the market.

trade jpy

USD/CAD

The pair is trading in the local consolidation near the minimum, so we can consider that our previous scenario is still relevant: we should open short positions after the sure breakdown of the local low. The movement must be abrupt and keen. A stop loss should be placed above the breakdown bar. A potential of the deal is 80-90 pips.

sell cad

AUD/USD

The uptrend with the Australian dollar is going on, so long positions are still in priority. We can enter the market after a little downward correction and resumption of the growth on increased volume. A stop loss should be placed below the yesterday’s minimum. A potential of the deal is 50-60 pips.

buy aud

XAU/USD

After the appearance of very large volume and the formation of the new resistance level 1314.90 – 1317.80, the price fell down and broke through the previous support level. It is worth noting that the movement of the price down was on small volume and it is located just below the new resistance level now. In addition, it is necessary to note the presence of a strong uptrend with this instrument, so purchases are still in priority.

volume gold tfxi

Long positions can be opened after the resumption of price growth and breakout of the resistance level on large volume. Movement must be sharp and confident. A stop loss should be placed under the breakout volume bar. The potential of the deal is 140-150 points.

buy gold tfxi

The sentiment: this indicator still confirms all our scenarios, except the Yen, which is located in the local consolidation at the moment.

sentiment

The bottom line: some currency pair showed corrections yesterday, but still, given strong local trends, our previous scenarios are actual.