Daily Technical Forex Forecast 11.01.2018
EUR/USD
The pair grew up sharply yesterday, but failed to continue upward movement as the new resistance level was formed, it is 1.2008. We should note that this level contains large volume and the price showed an abrupt fall, so until its breakout we should give preference to short positions.
We can enter the market after a smooth upward correction of the price on small volume, in order, to obtain a better entry point. A stop loss should be placed above the resistance with a little margin. A potential of the deal is more than 100 pips.
GBP/USD
The Pound grew up, but failed to continue growing and fell down. We should note that the bullish momentum was totally absorbed, which is a strong bearish signal.
The price is testing the support/lower limit of the range 1.3498 – 1.3513, if it breaks this mark down, we will be able to open sales.
The breakdown movement must be abrupt and supported by increased volume, so it will be a more accurate and reliable sign for opening new deals. A stop loss should be placed above the strong breakdown bar. A potential of the deal is 130 pips.
USD/JPY
The Yen has broken down the previous level of support and continued falling after that. The move was really sharp, which is a great bearish signal. But the downward move was stopped by the new level of support 111.30, where large volume is concentrated. So we can resume considering short positions only after the sure breakdown of this level. A stop loss should be placed above the breakdown volume bar. A potential of the deal is 130 pips.
USD/CAD
The pair showed a significant growth on huge volume yesterday. Also we need to point our the creation of the new resistance during this move. It is 1.2581, where large volume is concentrated. So that we can open long positions only after a sure and strong breakout of the level. A stop loss should be placed below the breakout bar. A potential of the deal is 120 pips.
AUD/USD
The Australian dollar also grew up strongly, but is still located in the local consolidation 0.7807 – 0.7881, so the best decision is just to wait for the exit of the pair from the range. The move must be sharp and supported by large volume.
At the moment the pair is testing the upper limit of the range, so the scenario of its breakout is in priority.
XAU/USD
Gold showed a fairly significant price growth, which was supported by increased volume yesterday. Nevertheless, even despite such a sharp move, the pair just updated the upper limit of the local consolidation, but could not get out of it. In the range 1306.50 – 1325.60 very large volume is concentrated, so the exit of the price from this consolidation will be an excellent signal for entering the market.
The breakout movement must be sharp and on increased/large volume, which will be a more accurate signal for entering the market. Given the sharp growth of the price yesterday, I prefer the scenario of continued growth and breakdown of the resistance, but from this level we can not enter the market.
The sentiment: this indicator has not reacted on the changes on the market, so we need additional signals to be able to consider new deals. Only scenarios with AUD/USD and USD/JPY are confirmed.
The bottom line: everything remained the same, so almost all pairs are in ranges and we need to wait for strong additional signals to be able to trade them .
Hits: 2