Daily Technical Forex Report 27.03.2018

EUR/USD

The Euro showed a sharp and rapid price growth and broke out the previous resistance level yesterday, which is an excellent bullish signal. It should also be noted that the upward movement was on an increased volume and a new volume support level of 1.2424 – 1.2445 was created, which only strengthens our scenario of opening long positions with this currency pair.

We can enter the market after the test of a new level of support and a sharp rebound of the price up. A stop loss should be placed just below the level of 1.2424. The potential of the deal is about 100 points.

GBP/USD

The Pound also showed a sure growth yesterday. Despite the fact that the movement was on the average volume and we can’t point out a new level or zone, this rise is an excellent bullish signal.

Purchases can be opened after a slight correction and a resumption of a sharp increase of the price on the large volume, which will be an excellent signal for entering the market. A stop loss should be located below the beginning of a sharp price movement. The potential of the deal is more than 100 points.

USD/JPY

The Yen corrected upwards yesterday, but the price growth was on the small volume, therefore we cannot consider it as a bullish signal. In addition, the level of resistance 105.69 is still relevant. So, we still need to give preference to sales. Short positions can be opened after the resistance level test and a sharp rebound of the price down.  A stop loss should be placed slightly above the level of 105.69. The potential of the deal is more than 100 points.

If the price breaks out the resistance level, it’s better to stay out of the market and do not trade against the trend.

USD/CAD

The price resumed its decrease and is trading near the lower limit of the consolidation/support level of 1.2818. Given the recent sharp drop on the increased volume, we can consider the scenario of a breakdown of this mark. The movement should be sharp and supported by the large volume. A stop loss should be placed just above the breakdown volume bar. The potential of the deal is more than 100 points.

AUD/USD

The Australian dollar is locked in the small local consolidation of 0.7680 – 0.7775, so the best solution with this currency pair will be to wait for a confident exit of the price from this range. The breakout movement must be swift and supported by the large volume, which will be a more reliable signal for entering the market.

While the pair is located within the range, it’s better to skip this instrument from our trading plan.

XAU/USD

Gold rise surely and confidently grew up yesterday. The  unfortunately, the volume was evenly spread throughout the chart, so we cannot allocate any particular level or zone. Nevertheless, considering all the factors, it is worth considering purchases with gold.

Long positions can be opened after a stoppage of the current correction, resumption of price growth and a breakout of the local maximum. A stop loss should be placed just below the breakout bar. The potential of the deal is 90-100 points.

The sentiment: this indicator fully affirms our deals with the Euro, Pound, Yen and gold, which is a great additional confirming signal.

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