Daily Technical Forex Forecast 08.02.2018

EUR/USD

The price fell down sharply and broke the previous level of support which is a great bearish signal. The volume during the movement was average, so we can’t point out any new specific volume levels. Nevertheless, given the abrupt and confident drop of the pair, we should consider exceptionally short positions.

We can enter the market after a smooth upward correction of the price to get a better entry point. A stop loss should be placed at the level 1.2345. A potential of the deal is up to 100 pips.

GBP/USD

After the formation of the new support level 1.3868 and a rebound of the price from it upwards, GBP/USD resumed the fall and is trading near this mark at the moment. The price did not show any new reaction after the test of the level, so the probability of a breakdown of the support is rather high. Also it is worth noting the recent rapid fall of the price, which only strengthens this scenario.

If the price sharply and confidently breaks the level of support on the large volume – this will be an excellent signal for entering the market. A stop loss should be placed just above the breakdown volume bar. The potential of the deal is more than 100 points.

USD/JPY

The situation with the Yen has not been changed as the price is still locked in the local consolidation between the support 108.48 and the resistance 110.43. That’s why we can regard new positions here only after a confident exit of the pair from this consolidation. The breakout move must be abrupt and supported by increased volume, which will be a more accurate signal for entering the market.

While the pair is located in the range, we should stay out of the market.

USD/CAD

The pair resumed its growth after a test of the support 1.2488, so that we should consider long positions at the moment. We can enter the market after a little correction of the price down in order to get a better entry point. A stop loss should be placed below the support. A potential of the deal is more than 100 pips.

AUD/USD

The Australian dollar also continued its local downtrend after the test of the resistance 0.7917. The move was abrupt, but on the small volume, so we can’t point out any new levels. Anyway, now we should give preference to short positions. We can enter the market after a smooth upward correction and a resumption of the sharp fall. A stop loss should be placed above the beginning of the move. A potential of the deal is more than 70 pips.

XAU/USD

After the upward correction of the price, gold resumed its fall. The downward movement was really sharp and supported by increased volume, which is a great bearish signal. Also we need to point out that the fall was stopped by the volume bar, but given the fact that the price did not show any significant reaction, we should consider short positions after a breakdown of this mark.

The breakdown movement must be confident and abrupt. A stop loss should be placed above the yesterday’s upward correction of the price. A potential of the deal is more than 120 pips.

The sentiment: this indicator has not changed and indicates that we must sell the US dollar. Nevertheless, considering the technical factors, our scenarios look quite promising, so we are waiting for additional signals and then enter the market.

The bottom line: almost all our previous scenarios were executed and now the still remains actual, so waiting for good entry point and then open new deals.

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