Daily Technical Forex Forecast 26.01.2018

EUR/USD

The situation with the Euro is a little confusing, since after a sharp price growth was followed by a rapid fall. It is worth noting that both movements were on very large volume. At the moment, the pair is trading between two strong volume levels: the support 1.2350 – 1.2365, which was tested and the resistance 1.2520, after the formation of which, the price fell sharply.

Nevertheless, given the recent exit of the price from the consolidation and the local uptrend, it is worth giving preference to the scenario of a breakdown of the resistance level and the resumption of growth. The breakout movement must be sharp and supported by 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.

GBP/USD

After the creation of the new level of resistance 1.4314, the price fell down sharply on incredibly large volume. The resistance also contains huge volume. But on the other hand, there is a strong uptrend, that’s why we should not open short positions at the moment and still must give preference to purchases.

We can enter the market after a resumption of the fall and the confident breakout of the resistance on large volume, which will be a more accurate signal for entering the market. A stop loss should be placed below the breakout volume bar. A potential of the deal is more than 100 pips.

USD/JPY

The Yen showed a strong growth on large volume. Unfortunately, volume was spread throughout the move, so we can’t point out any concrete level. Anyway, now we shouldn’t consider long positions as there is a strong downtrend with this currency pair. That’s why we should regard the scenario of opening of short positions.

We can enter the market after a resumption of the fall and the breakdown of the local minimum. A stop loss should be placed a little bit above the breakdown bar. A potential of the deal is more than 100 pips.

USD/CAD

The Canadian dollar also grew up strongly yesterday. Besides it, we should point out the new level of support 1.2286, from which the price started its upward move. But given the recent exit of the price from the range, we still should give preference to short positions. We can enter the market after a sure and sharp breakdown of the support. A stop loss should be placed above the breakdown bar. A potential of the deal is more than 100 pips.

AUD/USD

Here we must point out the new resistance 0.8096, where large volume is concentrated that pushed the price down. The fall was on large volume, but we still should consider long positions as there is a strong uptrend with this currency pair.

Purchases can be opened after a sharp breakout of the resistance level. A stop loss should be placed below the breakout bar. A potential of the deal is around 70 pips.

XAU/USD

Gold fell down and broke down the previous level of support. The downward move was on large volume, which was evenly spread throughout the fall, so we can’t point out any specific level.

Despite an abrupt fall, we must point out the presence of the uptrend and strong support at the bottom of the chart, so at the moment we still should give preference to long positions.

Purchases can be opened after a resumption of the growth and a breakout of the local maximum. The move must be sharp and, preferably, supported by large volume. A stop loss should be placed below the breakout volume bar. A potential of the deal is more than 150 pips.

The sentiment: today this indicator totally confirms all our scenarios which is a good additional signal for active trading.

The bottom line: despite strengthening of the US dollar, it is too early to consider the reverse of the market. That’s why all our previous scenarios are still actual.

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