Daily Technical Forex Forecast 23.05.2018


EUR/USD

After a sharp bullish momentum, the Euro resumed its decline. The movement was sharp, but on the small volume, so we can not allocate a new level or zone. Moreover, the pair is trading slightly above the volume support level  of 1.1722 now, so short positions can be opened only after the breakdown of this mark.

volume euro eng
The breakout movement must be sharp, confident, and also supported by the increased volume, which will be a more accurate signal for entering the market. A s top loss should be placed just above the breakout bar. The potential of the deal is more than 120 points.

sell euro

GBP/USD

The Pound grew up, but failed to continue its rise and resumed falling. The pair is currently trading near the local minimum at the moment. Unfortunately, the sink of the price was on the small volume, so we can’t highlight any new levels or zones. Nevertheless, given the presence of the large volume accumulation at the top of the chart, we should give preference to short positions.

volume gbp

We can enter the market after the continuation of the decline of the pair and the sure breakdown of the local minimum. A stop loss should be located just overhead the breakdown bar. The potential of the deal is more than 120 points.

sell gbp

USD/JPY

The Yen demonstrated a significant fall on the large volume. Nevertheless, we cannot open short positions at the moment, as the pair is locked in the local range of 110.04 – 111.36. Thus, the best decision is just to wait for the sure exit of the price from this consolidation and only after that we can regard new trading scenarios. The breakout move should be sharp and confident, and also supported by the large volume, which will be a more precise signal for entering the market.

trade jpy

USD/CAD

The pair rose up after the test of the support/lower limit of the local consolidation of 1.2750 and is trading near the middle of the local range again. The upper limit of the range is the resistance of 1.2985. The large volume is concentrated in this consolidation, so the best decision is just to wait for a confident exit of the price from it. The breakout should be abrupt and supported by the increased volume.

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

trade cad

AUD/USD

The Australian dollar also adjusted after the test of the resistance level/upper boundary of the range of 0.7581 and is trading inside the local consolidation between this mark and the support of 0.7424. Hence, new positions can be opened only after a sure exit of the price from this range. The breakout movement must be sharp and supported by the large volume, which will be a more reliable and secure signal for entering the market.

trade aud

XAU/USD

Nothing has not change with this instrument, as the pair continued trading in the middle of the local range between two strong levels: the level of support 1282.80 and the level of resistance 1301.60 – 1303.50.

volume gold

Therefore, the best decision with gold is just to wait for a confident and abrupt breakout of one of these levels and the exit of the price from the range. It will be a great signal for entering the market. The breakout move should be supported by the large volume, which will insure us against a fake breakout and will be a clearer signal for opening new deals.

trade gold

The sentiment: this indicator affirms our trading scenarios with the Euro and the Pound, which is an excellent additional signal. With all other instruments, we need to wait for confident exit of prices from local consolidations and only then can consider new deals.

sentiment