Daily Technical Forex Forecast 24.01.2018
EUR/USD
The Euro resumed its growth, moreover, the movement was on increased volume, which is a good bullish signal. Unfortunately, volume was spread throughout the chart, so we can’t point out any specific volume levels, but still should give preference to long positions.
We can enter the market after a smooth downward correction of the price and a resumption of the growth on large volume, which will be a stronger and more reliable signal for opening purchases. A stop loss should be placed below the abrupt growth. A potential of the deal is more than 100 pips.
GBP/USD
The price also showed a significant growth on increased volume, so we should give preference to long positions too. Moreover, there is a strong uptrend with the Pound, that only strengthens this scenario.
Nevertheless, we should wait for a confirming signal, because there is no concrete volume level at the moment.
Such a signal is a strong bullish impulse, preferably after a smooth downward correction of the price. The growth of the price must be supported by large volume, which will be a more accurate signal. A stop loss should be placed below the sharp upward move. A potential of the deal is more than 100 pips.
USD/JPY
The Yen showed a sharp fall yesterday and broke down the previous local minimum, which is a great bearish signal. Unfortunately, the move was on average volume, so we can’t enter the market right now as there is no good place for a stop loss.
We can enter the market after a smooth upward correction and a resumption of the fall on large volume. A stop loss must be placed above the beginning of the sharp fall. A potential of the deal is 110-120 pips.
USD/CAD
The price fell down and is trading near the support level/lower limit of the local consolidation 1.2366 – 1.2390, so we can consider the scenario of its breakdown. It will allow us to open short positions. The breakdown movement must be abrupt and supported by increased volume, in order to insure us from fake move. A stop loss should be placed above the breakdown volume bar. A potential of the deal is more than 100 pips.
AUD/USD
After a stoppage of the correction, the price resumed its growth and is located near the local maximum. The growth of the price was on increased volume, which is a good bullish signal, so we should give preference to long positions.
We can enter the market after the confident breakout of the local maximum, perfectly, if the breakout is on increased volume. A stop loss should be placed below the breakout bar. A potential of the deal is 60-70 pips.
XAU/USD
It is necessary to note a new support level 1331.70 – 1334.90 with gold, which was formed yesterday and in which very large volume is concentrated, that only strengthens its importance. It should also be noted that after the formation of the support, the price continued its growth and is located slightly above this level now.
Thus, with gold it is worth considering only purchases at the moment.
Long positions should be opened after a small and smooth correction of the price down to get a more advantageous entry point. A stop loss should be placed under the new level of support. The potential of the deal is more than 150 points.
The sentiment: all our trading scenarios are confirmed by this indicator that is a good additional signal for us, thus, waiting for acceptable entry points and open new deals.
The bottom line: the situation on the market became more suitable for trading as many pairs continued their trends or new volume levels were created, which makes trading more comfortable.
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