Daily Technical Forex Forecast 16.05.2018


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EUR/USD

The Euro fell down sharply and on the large volume yesterday and is testing the new support level/lower limit of the local consolidation 1.1828 at the moment. This is a great bearish signal, so we can regard a scenario of opening short positions with this pair.

volume euro

We can enter the market after a sure and abrupt breakdown of the level of support on the increased volume, which will be a more secure signal for entering the market. A stop the loss should be placed just above the breakdown bar. The potential of the deal is more than 100 points.

sell euro

GBP/USD

The Pound sank and tested the support level/lower boundary of the range 1.3470, but could not break it and is still trading inside the local consolidation. Nevertheless, given that the price is very close to this level, we can regard the scenario of its breakdown, which will be an excellent signal for opening short positions.

volume gbp

The breakdown movement must be keen and confident +  supported by the increased volume, which will be a more precise signal for entering the market. A stop loss should be located just above the breakdown bar. The potential of the deal is more than 150 points.

sell gbp

USD/JPY

The Yen showed an abrupt growth and broke out the previous resistance level, which is an excellent bullish signal. Besides it, the breakout movement was supported by the large volume, which only strengthens its importance. Thus, we should give preference to long positions at the moment.

We can enter the market after a small and smooth downward correction of the price, in order to obtain a more profitable entry point. A stop loss should be located under the beginning of the yesterday’s growth. The potential of the deal is more than 100 points.

buy jpy

USD/CAD

The Canadian dollar also rose up yesterday, but the price is still trading within the local consolidation 1.2750 – 1.2985. Thus, the best decision is just to wait for a sure exit of the price from the range. The breakout movement should be supported by the large volume, which will be a more reliable signal for entering the market.

While the pair is trading in the consolidation, it is better to stay out of the market.

trade cad

AUD/USD

The Australian dollar resumed its drop, but is still located in the local consolidation between the support 0.7424 and the resistance 0.7581. The large volume is concentrated within this range, so the best decision is just to wait for a sure exit of the price from it. The movement should be supported by the large volume, which will be a more precise and secure signal for entering the market.

trade aud

XAU/USD

The price showed a very large and sharp decline and broke down the previous support level/the lower limit of the local consolidation, which is an excellent bearish signal. Moreover, the fall was supported by the large volume, and a new volume resistance level of 1301.60 – 1303.50 was formed.
Thus, we should give preference to the scenario of opening sales with gold at the moment.

volume gold eng
We can enter the market after a small and smooth correction of the price up, in order to get a more profitable entry point to the market. A stop loss should be placed just above the new resistance level. The potential of the deal is more than 150 points.

sell gold

The sentiment: the mood of the market affirms our trading scenarios with EUR/USD, GBP/USD, USD/JPY and gold, which is an excellent additional confirming signal. I is necessary to wait for exit of prices from consolidations with USD/CAD and AUD/USD, as they are located in ranges.

sentiment