Daily Technical Forex Forecast 05.04.2018


EUR/USD

The Euro tested the level of support 1.2257 and rebounded overhead. Now the pair is trading in the local range between 2 strong levels: this one and the resistance 1.2342 – 1.2357. Large volume accumulation is concentrated inside this consolidation, so the best decision is just to wait for a confident exit of the price from the range.

volume euro

The breakout movement must be keen and supported by the large volume, which will insure us against the fake breakout and, of course, it will be a more secure signal for entering the market. Until that, we should skip this instrument from our trading plan.

trade euro

GBP/USD

The Pound is still trading in the local consolidation between 2 strong levels: the support of 1.4015 and the resistance 1.4095. As can be seen from the volume chart underneath, huge volume is concentrated inside this range, so the best solution with the Pound is just to wait for the price to come out from it.

volume gbp

The movement should be abrupt and supported by the large volume, which will be a more reliable and stronger signal for entering the market. While the pair is trading within this consolidation, we should stay out of the market.

trade gbp

USD/JPY

The Yen is still located in the consolidation of 105.34 – 106.92, but given the fact that the price is trading near the level of resistance/upper limit of the range, we can consider a scenario of its breakout. The move must be sharp and supported by the large volume. A stop loss should be placed below the breakout volume bar. A potential of the deal is more than 100 points.

buy jpy

USD/CAD

The Canadian dollar tested the resistance level of 1.2840 and resumed its fall. It is worth noting that the downward movement was sharp and supported by the large volume, which is an excellent bearish signal. It is also necessary to highlight the presence of the large volume accumulation at the top of the chart, which puts pressure on the price.

Given all of the above factors, we should give preference to short positions with the Canadian dollar. Sales can be opened after a small correction of the price up, to get a more advantageous entry point. A stop loss should be located a little above the resistance. The potential of the deal is more than 100 points.

sell cad

AUD/USD

Nothing has changed here as the pair is locked in the local consolidation 0.7650 – 0.7775, that’s why our previous scenario remains the same: we can regard new deals only after a sure exit of the price from the range on the large volume. It will be a good signal for entering the market. Until that, we should skip this instrument from our trading plan.

trade aud

XAU/USD

Gold grew up, fell down, but is still trading in the local consolidation between two strong volume levels. The first one is the support of 1323.10 – 1324.40, the second one is the resistance of 1355.70.

volume gold

Thus, we can consider new deals here only after the sure and sharp breakout of one of these levels on the large volume, which will be a good signal for entering the market. While the price is located in the range, we should skip gold from our trading plan.

trade gold

The sentiment: this indicator confirms short positions with the Canadian dollar (trading against the “crowd”). With the Yen the situation is complicated as the sentiment shows that we should give preference to purchases, but we consider long positions after the breakout of the resistance. So that we should watch for the change of this indicator if this move occurs. All other pairs are in ranges, so the mood of the market is not effective with them at the moment.

sentiment