Daily Technical Forex Forecast 21.03.2018

EUR/USD

The Euro showed a significant drop and broke down the previous level of support, but failed to continued dropping as the new volume level of support was created. It is 1.2285. So now we can regard a scenario of opening sales with the Euro. We can enter the market after a test of the new resistance and a resumption of the sharp dip after that. A stop loss should be placed above the level 1.2285 or the test of it. A potential of the deal is around 100 points.

If the price breaks out the resistance, we should stay out of the market.

GBP/USD

The Pound corrected downwards yesterday, but the movement was on the small volume + the previous level of support 1.3970 is still actual. So that we can’t consider short positions with this currency pair and still should give preference to sales.

Short positions can be opened only after a stoppage of the correction and a resumption of the abrupt growth on the price. A stop loss should be placed below the level of support. A potential of the deal is around 120-130 points.

If the pair breaks down the support, we must stay out of the market.

USD/JPY

The situation with the Yen remains the same: the pair grew up on the small volume yesterday, but is still trading within the local consolidation of 105.43 – 106.99. Therefore, new deals can be opened only after a sure and abrupt exit of the price from this range. The breakdown movement must be supported by the large volume, which will insure us against a false breakdown.

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

USD/CAD

The Canadian dollar fell down significantly, but we must note that the price drop was on the small volume, so we cannot regard it as a reversal sign. Moreover, there is a strong uptrend with this currency pair.

Hence, purchases are still in priority with USD/CAD. Long positions can be opened after a resumption of the price growth and a breakout of the resistance level of 1.3100. The breakdown movement must be keen and on the large volume. A stop loss should be placed under the breakout volume bar. The potential of the deal is more than 100 points.

If the pair continues falling, it is better not to trade this instrument.

AUD/USD

The Australian dollar continued falling, but the price drop was smooth and on the small volume, so we cannot point out any new volume level or zone. Nevertheless, the previous resistance of 0.7745 – 0.7757 is still actual. That’s why, we need to wait for a small correction of the price upwards, in order to get a more profitable entry point. A stop loss should be located a little above the resistance level. The potential of the deal is about 70-80 pips.

XAU/USD

Gold showed a significant fall and broke down the previous support level/lower limit of consolidation. Nevertheless, the price could not continue its decline, as the new volume support level of 1308.20 was created, which stopped the downward movement.
Thus, gold is trading in the local consolidation once again. The upper limit of the range is resistance of 1328.90.

As can be seen from the volume chart above, the large volume is concentrated in this range, so the best solution will be to wait for a sure exit of the price from this consolidation. The breakout movement must be sharp and supported by the large volume, which will be a more reliable and strong signal for opening new deals.
While the price is locked in the consolidation, it is better to stay out of the market.

The sentiment: the mood of the market confirms our deals with the Pound, Canadian and Australian dollars, which is a good additional signal for us. Nevertheless, given the tough market situation, we still should be careful and enter the market after strong confirming signals appear.

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