Daily Technical Forex Forecast 20.04.2018


EUR/USD

The Euro tested the resistance level of 1.2395 again, but failed to break it out and dropped sharply. The pair is located in the range between this level and the support of 1.2307 at the moment.

The large volume accumulation is concentrated in this consolidation, so the best decision is just to wait for a sure and keen exit of the pair from the range. The movement must be upheld by the large volume, which will be a more secure signal for entering the market.

Until that, it is better to skip this instrument from our trading plan.

volume euro

GBP/USD

As predicted, the Pound continued its drop and broke down the support level yesterday. It is worth noting that the breakout movement was impulsive and supported by the very significant volume, which is a strong bearish signal. Yes, the volume was evenly distributed throughout the movement, so we can not allocate a new level or zone, but given the breakdown of support and such a rapid decrease of the price, we must consider exceptionally short positions with this instrument.

volume gbp tfxi
Sales should be opened after a small and smooth upward price correction in order to get a more profitable entry point to the market. A stop loss should be placed just above the strong bearish momentum. The main goal is the level  of 1.3983.

sell gbp tfxi

USD/JPY

The Yen showed an abrupt surge and broke out the resistance level, but despite this fact, we can’t open purchases at the moment as the volume during the move was average. Besides it, the price is testing the local maximum. Hence, the most reliable option for opening purchases is just to wait for a sure and abrupt breakout of the level of 107.70. A stop loss should be placed below the breakout bar. The potential of the deal is more than 100 points.

buy jpy

USD/CAD

Our previous scenario was totally executed as the continued its growth after a slight correction. Therefore, this trading scenario remains actual: long positions should be in priority. We can enter the market after a small and smooth correction of the price down, in order to obtain a more profitable entry point. A stop loss should be located underneath the yesterday’s low. The potential of the deal is around 80-90 points.

buy cad

AUD/USD

The pair tested the resistance level of 0.7775 and then showed a sharp rebound of the price down. So the Australian dollar is located in the middle of the local consolidation of 0.7650 – 0.7775 again. The very large volume is concentrated inside this range. Hence, the best decision is just to wait for a confident exit of the pair from this range, which will be an excellent signal for entering the market.

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

trade aud

XAU/USD

Nothing has changed with gold as despite the drop of the price, it is still located in the consolidation between the support of 1323.10 – 1324.40 and the resistance of 1362.00 – 1363.30. Given that the large volume is accumulated in this consolidation, we should wait for the exit of the price from it, which will be an excellent signal for entering the market.  The breakout movement must be rapid and sure + supported by the large volume, which will be a more reliable and accurate sign for opening new positions with this instrument.

While gold is trading within the consolidation, we should stay out of the market.

volume gold

The sentiment: this indicator totally affirms our scenarios with GBP/USD and USD/CAD, which is a good additional confirming signal. Therefore, these 2 pairs should be in priority today. As with the Yen, then the situation is almost 50/50, but given strong technical factors, we should consider long positions at the moment. With other 3 pairs, we should wait for exits of prices from ranges firstly.

sentiment