Daily Technical Forex Forecast 08.03.2018

EUR/USD

The Euro stopped growing and started trading in the little consolidation near the local maximum. Hence we should wait for the exit of the price from it, but given the recent sharp growth of the pair on the large volume, we still should give preference to long positions here.

We can enter the market after a resumption of the upward move and a confident breakout of the local maximum. The breakout movement must be abrupt and supported by the increased volume. A stop loss should be placed below the lower boundary of the range. A potential of the deal is around 120 points.

GBP/USD

The pound did not show any significant movement yesterday, so the pair is still trading a little bit above the strong and volume level of support 1.3823. Therefore, our previous remains the same: until the breakdown of the support, we should give advantage to long positions.

We can enter the market after a resumption of the sharp growth and a breakout of the local maximum. A stop loss should be placed below the yesterday’s minimum. A potential of the deal is around 130 points.

USD/JPY

The Yen adjusted up once again yesterday and is currently trading below the resistance level of 106.39 – 106.50. Given that the move of the price was on the small volume, we still should give advantage to sales with this instrument.

We can enter the market after the stoppage of the correction and the resumption of a sharp fall of the pair. A stop loss should be placed a little above the level 106.50. A potential of the deal is more than 120 points.

USD/CAD

The Canadian dollar tested the level of resistance 1.2994, but failed to break it out and then sharply corrected down. On the one hand, there is a strong resistance at the top of the chart, so we cannot open purchases before its breakout. On the other hand, there is a strong uptrend, so we should not open sales either.

Moreover, now the price is locked within the local range between the resistance of 1.2994 and the support of 1.2818, which contains the large volume. That’s why, the best decision is just to wait for a sure exit of the price from this range.

While the price is trading in the consolidation, it is better to stay out of the market.

AUD/USD

The situation here has not changed, because the Australian dollar is still trading within the local consolidation between the support of 0.7717 and the resistance of 0.7878. Hence, our previous scenario is still actual: new positions can be opened only after a confident and sharp exit of a pair from this range. The breakout movement should be supported by the large volume, which will be a more accurate signal for entering the market.

Until that, it is better to stay out of the market.

XAU/USD

Gold could not continue its growth and sharply adjusted down yesterday. It is worth noting that the price drop was rapid and on the large volume + the previous level of support was also broken down. Nevertheless, we can not open short positions at the moment, as the price fall was stopped by a new volume support level of 1323.50.

Thus, the best solution with gold will be to wait for a sharp and strong reaction of the price on the new level of support.
If the pair breaks down this mark, we can enter the market and open short positions.
In the case of a test of the support and a sharp price rebound up, we can consider the scenario of opening long positions with this instrument.

The sentiment: the mood of the market affirms our trading scenarios with EUR/USD, GBP/USD and USD/JPY, which is a good additional confirming sign. Thus, these instruments should be in priority.

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