Daily Technical Forex Forecast 10.04.2018

EUR/USD

The Euro demonstrated steady and sharp rise of the price and is trading near the resistance level/lower limit local range of 1.2342 – 1.2357 now. It should also be noted that the upward movement was supported by the large volume, which is a strong bullish signal. Thus, we should give preference to long positions at the moment.

Purchases can be opened after the continuation of the growth of the price and the breakout of the resistance level on the large volume, which will be more accurate and reliable signal for entering the market. A stop loss must be placed under the breakout volume bar. The potential of the deal is about 100 points.

GBP/USD

The Pound also grew up strongly and broke out the previous resistance level/the upper boundary of the local range, which is an excellent bullish signal. So even in spite of the fact that the movement was on the average volume, we should give preference to long positions.

We can enter the market and open purchases after a small price correction down to obtain a more profitable entry point. A stop loss should be located the beginning of a breakout movement. The potential of the deal is about 110-120 points.

USD/JPY

The situation with the Yen is is puzzled, as the sharp fall of the price has been replaced by the abrupt growth on the increased volume this morning. The pair is located near the volume resistance level at the moment, so we can consider 2 trading scenarios. The first one, a continuation of the growth and a sharp breakout of the resistance level, which will be an excellent signal for opening purchases. The second, a test of the resistance and a strong rebound of the price down on the large volume, which will allow us to open sales with the Yen.

USD/CAD

The Canadian dollar slumped and broke down the previous support level yesterday, which is an excellent signal for sales. Moreover, the breakdown move was on the increased volume, which only strengthens its importance. So now we must consider exceptionally short positions.

Sales can be opened after a small and smooth correction of the price upwards to get a more profitable entry point. A stop loss should be placed just above the breakdown bar. The potential of the deal is more than 100 points.

AUD/USD

The Australian dollar tested the support level/lower border of the consolidation 0.7650, but failed to break it down and sharply grew up. Nevertheless, the price is still inside the local consolidation between the support and the resistance of 0.7775. Therefore, the best scenario will be to wait for a sure and keen exit of the price from the range. The breakout movement must be supported by the large volume.

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

XAU/USD

Gold smoothly corrected down, but then it resumed its growth. Hence, our previous scenario remains actual: in spite the fact, that the price is within the range, we can consider the option of opening long positions.

Purchases can be opened after a small and smooth correction of the price down to get a more profitable entry point. A stop loss should be placed under the support level of 1323.10 – 1324.40. The potential of the deal is more than 200 points.

The sentiment: this indicator totally affirms all our scenarios – long positions with EUR/USD, GBP/USD, XAU/USD and short positions with USD/CAD, which is a great additional confirming signal. With other currency pairs we need to give preference to short positions (according to the sentiment), but these deals are more risky.

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