Daily Technical Forex Forecast 18.01.2018


EUR/USD

The Euro fell down sharply yesterday, but the movement of the pair was on small volume, so we can’t regard it as a reversal signal. Moreover, there is a strong support level 1.2107, where large volume is concentrated. That’s why we still should give preference to long positions with the Euro.

volume euro

We can enter the market after a stoppage of the correction of the price and a resumption of the growth. The upward move must be abrupt and supported by increased volume, so it will be a more reliable signal of a continuation of the uptrend. A stop loss should be placed below the support 1.2107. The target is 1.2305.

buy euro

GBP/USD

After the sharp growth of the price, the Pound fell down sharply too. We should point out that the fall was on small volume, so we can’t consider it as a strong bearish signal or reversal of the trend. So at the moment we still should give preference to long positions with GBP/USD.

volume gbp

We can enter the market after a stoppage of the downward correction of the price and a confident resumption of the growth. A stop loss should be placed below the level 1.3735. A potential of the deal is more than 100 pips.

buy gbp

USD/JPY

The Yen grew up, but the move was on very small volume, so that we should not regard it as a strong bullish impulse. Moreover, given the presence of the strong local downtrend, we must give advantage to short positions. We can enter the market after a stoppage of the upward correction and a resumption of the fall of the price. Perfectly, if the fall is supported by increased/large volume. A stop loss should be placed above the level 111.70. A potential of the deal is around 120-130 pips.

sell jpy

USD/CAD

After the test of the level of support, the price grew up and now is located in the middle of the local consolidation. The boundaries of the range are: the support 1.2366 – 1.2390 and the resistance 1.2581. That’s why the best decision is just to wait for the exit of the price from the range and only after that we will be able to consider new deals here.

trade cad

AUD/USD

The price fell down and tested the support level 0.7942 yesterday. At the moment the pair is located a little bit above this mark, so our previous scenario of opening long positions is still actual. 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 the level 0.7942 with a little margin. A potential of the deal is around 60-70 pips.

buy aud

XAU/USD

Gold continued correcting down yesterday. The fall of the price was rather sharp, but on small volume, so we can not consider this movement as a trend reversal. Moreover, at the moment the price is testing the support level 1325.60 – 1328.10, in which large volume is concentrated. Also, the support level 1320.00 – 1322.20 remains relevant. Thus, before a breakdown of these levels, we should give preference to long positions with this instrument.

volume gold tfxi
Purchases can be opened after a sharp rebound of the price from the support level. The growth should be sharp and, preferably, on increased volume, which will be a stronger signal for the continuation of the uptrend with gold. A stop loss should be placed a little below the level 1325.60. The target is 1343.30.
If the price breaks out this level of support, we can apply our scenario to the next level.

buy gold tfxi

The sentiment: despite corrections of all our instruments this indicator still confirms all our trade scenarios. Only with USD/CAD the situation is complicated as the pair is locked in the local consolidation, so we can’t use the sentiment for it at the moment.

sentiment

The bottom line: the market corrected strongly yesterday, but given that counter trend moves were on small volume, our previous scenarios are still actual.