Daily Technical Forex Forecast 22.01.2018

EUR/USD

The price continues trading inside the local consolidation. It should be noted that the pair moves on small volume, so it is impossible to allocate any volume level. Also, it is necessary to point out a large accumulation of volume within this range, so the exit of the price from the consolidation will be an excellent signal for entering the market. Given the presence of a strong uptrend, it is worth giving preference to the scenario of a breakout of the upper boundary.

The breakout movement must be sharp and on increased volume, which will be a more accurate and strong signal for entering the market. A stop loss should be placed under the breakout volume bar. The potential of the deal is more than 100 points.

GBP/USD

The Pound tested the resistance level 1.3934 on Friday, but could not break it, and then corrected down. The fall of the price though it was quite sharp, but on small volume, and considering the uptrend, it is worth giving preference to long positions.

Purchases can be opened after a resumption of the price growth and breakout of the resistance level on large volume, which will be a more accurate signal for entering the market. A stop loss should be placed under the breakout volume bar. The potential of the deal is more than 100 points.

USD/JPY

The downtrend with this currency pair has continued and now the price is trading near the local minimum. It is worth noting that the price moves on small volume, so it is impossible to allocate any volume level.
Thus, we can open sales after a breakdown of the local minimum, which will be a more accurate and reliable signal for entering the market. The breakdown should be sharp and on increased volume. A stop loss should be placed just above the breakdown volume bar. The potential of the deal is 120-130 points.

USD/CAD

After another test of the support level, the price rebounded and is again located in the middle of the consolidation between two volume levels: 1.2366 – 1.2390 and 1.2581.
Therefore, the best scenario is to wait for the price to come out of the consolidation. This will be an excellent signal for entering the market. The breakout movement must be sharp and on large volume to avoid false movement.
While the price is in the range, it is better to stay out of the market.

AUD/USD

The Australian dollar broke out the local maximum, but could not continue growing and corrected downward. The fall was small volume, so do not consider it as a market reversal. Moreover, there is a strong uptrend with this pair, so purchases should be in priority.
Long positions can be opened after a stoppage of the price fall and a resumption of the strong growth. A stop loss should be placed under the support level 0.7942. The potential of the deal is up to 70 points.

XAU/USD

After 2 tests of support level 1325.60 – 1328.10, gold is still located slightly above this level. Also it is worth noting that the previous support level 1320.00 – 1322.20, which also remains relevant. Thus, given the presence of 2 volume support levels and a strong uptrend, it is worth giving preference to long positions.

Purchases can be opened after the resumption of a confident growth of the price on increased volume, which will be an excellent signal for the continuation of the trend. A stop loss should be placed under the level 1325.60. The target is 1344.00.

The sentiment: the mood of the market confirms our deals with the Euro, Pound, Australian dollar and gold. According with the Yen, this indicator shows the priority of purchases, on the other hand all the technical factors point to sales. The Canadian dollar is locked in the consolidation, so while this indicator is not relevant with this instrument.

The bottom line: waiting for additional signals as there is no a great deal right now.

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