Daily Technical Forex Forecast 23.01.2018

EUR/USD

The Euro is still locked in the local range, where large volume is concentrated, so the exit of the price from this consolidation will be a great signal for considering new deals. Given the presence of the local uptrend with this currency pair, it is worth giving preference to long positions.

Purchases can be opened after a resumption of the price growth and a confident breakout of the upper limit of the consolidation/local maximum. The breakout movement must be supported by large volume, which will be a more accurate signal for entering the market. A stop loss should be placed below the breakout volume bar. The potential of the deal is more than 100 points.

GBP/USD

As predicted, the Pound broke out the resistance level, after which the price continued its upward movement. The breakdown movement was sharp and swift, but, unfortunately, on average volume, so trading this breakdown is rather risky. Nevertheless, this is an excellent bullish signal, therefore it is necessary to give preference to long positions with this currency pair.

Purchases can be opened after a small and smooth correction of the price down and the resumption of the sharp growth of the pair on large volume, which will be a more reliable and accurate signal for entering the market. A stop loss should be placed a little below the beginning of the rapid growth. The potential of the deal is more than 100 points.

USD/JPY

The Yen is trading in the local consolidation near the local minimum, so we should wait for the exit of the price from it in order to be able to consider new positions here. But given the strong downtrend with this currency pair, we must give preference to short positions.

We can enter the market after the breakdown of the local minimum. The breakdown movement must be sharp and supported by large volume, which will be a more accurate signal for opening sales. A stop loss should be placed above the breakdown volume bar. A potential of the deal is around 120-130 pips.

USD/CAD

Nothing has changed with the Canadian dollar as the pair is still locked between two strong volume levels: the support 1.2366 – 1.2390 and the resistance 1.2581. That’s why we should wait for the exit of the price from this range, which will consent us to consider new deals with this instrument. The breakout movement must be swift and on increased volume, which will insure against false breakdown.

While the price is within the range, it is better to stay out of the market.

AUD/USD

The pair is located near the local maximum at the moment. Given the presence of the strong uptrend with this currency pair, we should consider the scenario of its breakout, that will be a good bullish signal and will allow us to open long positions.

The breakout move must be abrupt and, preferably, supported by increased/large volume, which will be a more reliable signal. A stop loss should be placed below the breakout volume bar. A potential of the deal is around 70 pips.

XAU/USD

The price grew up yesterday, but it is still trading a little bit above the support level 1325.60 – 1328.10. The growth was on small volume, so we can’t trade this move, but given the presence of 2 strong support levels (the second one is 1320.00 – 1322.20), we should consider exceptionally long positions.

We can open purchases after a smooth downward correction of the price and a resumption of the sharp growth on large volume. A stop loss should be placed below the newest support level. The potential of the deal is around 150 pips.

The sentiment: the mood of the market confirms all our scenarios which is a great additional signal for us. With the Canadian dollar we should give preference to short position (according to the sentiment), but firstly the price should exit from the range.

The bottom line: the situation on the market has not changed, so all our previous scenarios are still actual.

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