Daily Technical Forex Forecast 11.05.2018

EUR/USD

The Euro grew up strongly and on the large volume, but the price is trading in the local consolidation between two volume levels. They are the support of 1.1842 and the resistance of 1.2014. The large volume is concentrated in this range, therefore, the best decision with this pair is just to wait for a sure and keen exit of the price from the range. The move must be supported by the large volume, which will be an excellent signal for entering the market.

GBP/USD

Yesterday, the Pound showed a strong bearish momentum and broke the previous support level on the large volume, which is an excellent signal for the opening of sales with this instrument. It is worth noting that the drop of the pair was stopped by the new support level of 1.3470, in which the increased volume is concentrated. Thus, we can open short positions only after the breakdown of this mark.

The breakout movement must be sharp and supported by the large volume, which will be a more reliable signal for entering the market. A stop loss should be placed just above the breakdown volume bar. The potential of the deal is more than 150 points.

USD/JPY

The Yen tested the resistance level of 109.97, but failed to break it out and corrected downwards yesterday. Now the pair is located in the middle of the local range between this mark and the support of 108.65 – 108.81. Hence, our previous scenario remains actual: we can enter the market only after a confident exit of the price from the consolidation. The breakout movement should be supported by the large volume, which will be a more reliable signal for entering the market.

USD/CAD

The Canadian dollar continued falling on the large volume and broke down the previous support level, which is a great bearish signal. Nevertheless, the drop of the pair was stopped by the creation of the new volume support level of 1.2750. Thus, we can enter the market only after a sharp breakdown of this mark on 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 continued its upward adjustment, but is still trading in the local consolidation of 0.7424 – 0.7581. The large volume is concentrated within this range, so the best scenario will be to wait for a sure exit of the price from it. The move must be abrupt and supported by the large volume, which will be a more precise and strong signal for entering the market.

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

XAU/USD

Nothing has not changed here as even despite the price growth yesterday, the pair is still locked in the local consolidation between two levels. The first one is the support of 1302.20, the second – the resistance of 1326.00. Given that the large volume accumulation is  located concentrated in this range, the best decision is to wait for a breakdown of one of the limits of the range and only after that it is possible to open new positions. The move should be abrupt and supported by the large volume, which will insure us against a fake breakdown and will be a more precise and secure signal for entering the market.

While gold is trading within the local consolidation, it is better to stay out of the market.

The sentiment: this indicator confirms our scenario with GBP/USD, so it should be in priority today. The situation with all other instruments is not clear, so it’s better to wait for additional signals, like exit of price from their consolidations.

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