Daily Technical Forex Forecast 07.03.2018

EUR/USD

The Euro grew up strongly and on the large volume yesterday. Besides it, the previous upper boundary of the range was broken out, which is a great signal for opening long positions. Unfortunately, the volume was evenly spread throughout the movement, so we can’t point out any new volume level.

Anyway, all factors tell us that we should give advantage to purchases.

We can enter the market after a smooth and slight correction of the price down, in order to obtain a better entry point. A stop loss must be placed below the beginning of the yesterday’s bullish impulse. A potential of the growth is around 110-120 points.

GBP/USD

The Pound tested the support level of 1.3823, but failed to break it down and then showed an abrupt growth. This move only strengthens the importance of this mark. Therefore, our previous scenario remains relevant: purchases should be in priority until the breakdown of the support.

We can enter the market after a smooth correction of the price down on the small volume in order to obtain a more profitable entry point. A stop loss should be allocated below the support level. The potential of the deal is 100-110 points.

USD/JPY

The Yen tested the volume resistance level of 106.39 – 106.50, but failed to break it out. Then the price fell sharply down. Hence, our previous scenario remains relevant – sales should be in priority with the Yen.

Short positions can be opened after a small correction of the price up in order to get an acceptable entry point. A stop loss should be placed a little above the resistance. The potential of the deal is more than 120 points.

USD/CAD

The Canadian dollar dropped down yesterday, but then resumed its growth and is located a bit below the local maximum/resistance level of 1.2994 at the moment. Considering the strong uptrend, we can regard the scenario of a breakout of this mark, which will be a good sign for opening long positions.

The breakout movement must be sharp and confident. A stop loss should be placed under the breakout bar. The potential of the deal is more than 100 points.

AUD/USD

The Australian dollar rose up and broke out the upper limit of the consolidation, but could not continue the upward movement and fell down yesterday. We should point out that both movements were on the small volume, so we can’t highlight any new volume level or zone.

Besides it, the pair is still locked in the local consolidation of 0.7717 – 0.7878, where the large volume is concentrated. That’s why, the best decision is to wait for the sure exit of the price from this range and only after that we can regard new trading scenarios.

Until that, we should stay out of the market.

XAU/USD

Yesterday, there were a sharp growth of the gold price and a breakout of the previous upper limit of the consolidation. Moreover, the breakout movement was supported by a large volume, which only strengthens the significance of this move. It is also necessary to highlight the new volume support level of 1329.00 – 1330.00.
Considering all the above factors, we should consider exceptionally long positions with gold at the moment.

Purchases can be opened after the support level test (or the end of the correction) and the resumption of a sharp price growth. A stop loss should be placed under a new level of support. The potential of the deal is more than 150 points.

The sentiment: the mood of the market acknowledges all our scenarios (trading against the “crowd”), which is a good confirming signal for active trading today.

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