Daily Technical Forex Forecast 09.02.2018

EUR/USD

After a sharp fall of the price, the Euro started trading in the local consolidation, where significant volume is concentrated. So the best decision is to wait for the exit of the price from this local range. Given the strong recent drop of the price and the presence of large volume accumulation at the top of the chart, we should consider the scenario of continuation of the fall and a breakdown of the consolidation.

The movement must be abrupt and confident + on the increased volume, which will be a more accurate signal for entering the market. A stop loss should be placed above the breakdown bar. A potential of the deal is up to 100 pips.

GBP/USD

Despite the sharp bullish momentum, the price resumed its fall instead of further growth and totally absorbed the upward move. Now the pair is trading near the local minimum/support level 1.3868, so our previous scenario remains the same: short positions after a sure breakdown of the support.

The breakdown move must be sharp and supported by the large volume, which will insure us from fake breakdown. A stop loss should be placed above the breakdown volume bar. A potential of the deal is more 100 pips.

USD/JPY

The Yen fell down sharply and on the increased volume, which is a great bearish signal. The price is located near the level of support 108.48 at the moment, so we can consider the scenario of the breakdown of this mark which will allow us to open short positions. The breakdown move must be supported by large volume, which will be a more reliable signal for entering the market. A stop loss should be placed above the breakdown volume bar. A potential of the deal is more than 100 pips.

USD/CAD

The local uptrend with the Canadian dollar is going on, so now we should consider exceptionally long positions. Moreover, the growth was supported by increased volume, which only strengthens our scenario. We can enter the market after a breakout of the local maximum. A stop loss should be placed below the breakout bar. A potential of the deal is up to 120 pips.

AUD/USD

The Australian dollar continued falling, so we can affirm that the local downtrend is going on. Unfortunately, we can’t point out any new volume levels as the price falls on medium volume which is evenly spread throughout the chart. Anyway, we should give preference to short positions at the moment.

We can enter the market after a smooth upward correction of the price and a resumption of the sharp fall. A stop loss should be placed above the abrupt move. A potential of the deal is more than 70 pips.

XAU/USD

After the formation of a new support level of 1307.80, gold gradually adjusted upwards. It is worth noting that the level contains quite a significant amount, whereas, the price growth was on a small scale. It is also necessary to allocate a large volume accumulation at the top of the chart, which puts pressure on the price, so despite the correction of the pair upwards, it is worth giving preference to sales in gold.

Short positions can be opened after the resumption of the price drop and breakdown of the support level 1307.80. The breakout movement should be supported by a large volume, which will be a stronger signal for entering the market. Stop the loss should be placed just above the breakdown bar. The potential of the deal is more than 120 points.

The sentiment: this indicator confirms our scenarios with the Yen and the Canadian dollar. With all other pairs the situation is more difficult, but given strong technical factors, we should give preference to our scenarios.

The bottom line: there are a plenty of interesting scenarios, but for most of them we need to wait additional signals.

Hits: 1