Daily Technical Forex Forecast 10.01.2018


EUR/USD

The Euro continued its fall and broke down the previous support level. It is worth noting that the price correction is quite rapid, but on average volume. Nevertheless, we can point out a new level of resistance 1.1977, in which rather significant volume is concentrated. Thus, now we can consider the scenario of opening sales from this mark.

volume euro tfxi
Enter the market is after a small and smooth correction of the price to the level of resistance and the resumption of a sharp fall in the pair. Stop loss should be placed just above the level of 1.1977. The potential of the deal is 110 points.

sell euro tfxi

GBP/USD

The price fell down and is trading near the level of support 1.3498 – 1.3513 at the moment. Also we should note that the pair is located in the local consolidation between this level and the resistance 1.3583. Large volume is concentrated in this range, that’s why the best decision will be just to wait for the sure exit of the price from this consolidation. The move must be abrupt and supported by large volume, which will be a more accurate signal for entering the market.

volume gbp

USD/JPY

The pair showed a strong fall yesterday and now the price is located a little bit above the support level 112.08, which allows us to consider the scenario of its breakdown, that will be a great bearish signal.

The breakdown move must be confident and sharp, after that we can open short positions. A stop loss should be placed above the breakdown bar. A potential of the deal is 100-110 pips.

sell jpy

USD/CAD

The Canadian dollar corrected upwards yesterday, but the move was smooth and on small volume, so we can’t regard it as a reversal signal at the moment and still should give preference to short positions. We can enter the market after a resumption of the fall and a sure breakdown of the support level 1.2366 – 1.2390. A stop loss should be placed above the breakdown bar. A potential of the deal is more than 100 pips.

If the price continues growing, we should stay out of the market.

sell cad

AUD/USD

The pair broke down the previous support and now is located in the local consolidation 0.7807 – 0.7866, where large volume is accumulated. That’s why the best option will be waiting for the exit of the price from this range, which will allow us to consider new deals here.

While the pair is locked in this consolidation, we should stay out of the market.

trade aud

XAU/USD

Gold also fell down and broke down the previous support level. Now the price is located in the local consolidation 1306.50 – 1322.40. As can be seen from the volume chart below, large volume is concentrated within this range, so the exit of the price from it will be a great signal for considering new positions.

The breakout movement must be abrupt and supported by large volume, which will be a more reliable and strong signal for entering the market.

volume gold

The sentiment: given that almost all currency pairs are in consolidations, this indicator loses its important. Anyway, our scenario with USD/CAD is confirmed + the changing of the tendency with EUR/USD supports our trading decision.

sentiment

The bottom line: a lot of corrections appeared on the market and, as a consequence, almost all pairs are located in consolidations right now, that’s why we should be extremely careful.

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