Daily Technical Forex Forecast 14.02.2018

EUR/USD

The Euro grew up yesterday, but we should note that the movement was smooth and supported by the small volume, that’s why we can’t regard long positions at the moment with this instrument. Moreover, the pair is locked in the consolidation between two strong levels: the support 1.2209 and the resistance 1.2520. Large volume is concentrated in this range, so we can trade this instrument only after a confident exit of the price from the consolidation.

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

GBP/USD

The price also showed a smooth growth on small volume yesterday, so we can’t consider long positions at the moment. Besides it, the volume is evenly spread throughout the chart, so it is impossible to point out any volume levels or zones.

In general, the situation with this currency pair is quite difficult for trading, so the best decision is just to skip it from our trading plan today.

USD/JPY

The Yen showed a sharp fall and broke down the previous local minimum, which is a great bearish signal. Moreover, the move was sharp and confident, so now we should give preference to short positions. We can enter the market after a smooth upward correction of the price in order to get a better entry point. A stop loss should be placed above the beginning of the abrupt drop. A potential of the deal is more than 150 points.

USD/CAD

The situation with the Canadian dollar remained the same as the price is locked in the local consolidation between two strong volume levels. They are the support 1.2488 and the resistance 1.2520. Thus, our previous scenario is still relevant – we can trade this instrument only after a sure exit of the price from the consolidation.

Until that, we should stay out of the market.

AUD/USD

The Australian dollar grew up, but given that the movement was smooth and supported by the small volume, we can’t regard long positions at the moment. In general, the pair is located in the consolidation between the support 0.7770 and the resistance 0.7943-0.7957. Thus, it is necessary to wait for the exit of the price from this consolidation and only after that we can consider new deals here.

While the pair is trading within this range, we should skip this instrument from our trading plan.

XAU/USD

The price continued its growth and is currently testing the resistance level/upper limit of the local consolidation 1333.70 – 1337.20. It is worth noting that the price growth was on the small volume, so we can not allocate any new volume levels, and it is possible to open purchases only after the breakout of the resistance.

The breakout movement must be sharp and supported by the large volume, which will be a more accurate and strong signal for entering the market. A stop loss should be placed under the breakout volume bar. The potential of the deal is more than 120 points.

The sentiment: this indicator confirms our scenarios with the Yen and gold, so these two instruments should be in priority today.

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