Daily Technical Forex Forecast 07.06.2018
EUR/USD
Our previous scenario with the Euro was fully executed, as the pair continued its upward movement and broke out the previous resistance level, which is an excellent signal for opening purchases. Moreover, the price increase was on the large volume, which only strengthens its value.
Long positions should be opened after a smooth and small price correction down to get a more profitable entry point. A stop loss should be located under yesterday’s volume breakout bar. The potential of the deal is more than 120 points.
GBP/USD
The Pound also rose up and broke out the previous resistance level, which is a good bullish signal. However, the breakout move was smooth and on the small volume, so we can’t regard long positions at the moment.
That’s why we can enter the market only after the continuation of the price growth, but it should be supported by the large volume, which will be a more secure signal for opening purchases. A stop loss should be located below the beginning of the sharp upward movement. The potential of the deal is more than 150 points.
USD/JPY
The Yen is located in the small consolidation just underneath the resistance level of 110.33 at the moment. Hence, our previous trading scenario is still actual: we can open long positions after a keen and confident breakout of this mark. The movement must be supported by the large volume, which will be a more precise signal for entering the market. A stop loss should be located just below the breakout volume bar. The potential of the deal is about 100 points.
USD/CAD
The Canadian dollar is also trading within the local consolidation between two strong volume levels. They are the support 1.2750 and the resistance 1.3030. Given that the large volume is accumulated in this consolidation, the best decision is just to wait for a sure exit of the pair from it. The breakout movement must be rapid and supported by the large volume, which will insure us against a fake breakout.
While the pair is within the consolidation, it is better to stay out of the market.
AUD/USD
The Australian dollar broke out the previous resistance level, but failed to continue rising and then corrected downwards. We also should point out the new volume level of 0.7675, which stopped this move. Therefore, we can open long positions only after a confident breakout of this mark on the large volume, which will insure us against a false breakout and will be a more secure signal. A stop loss should be placed below the breakout volume bar. The potential of the deal is 80-90 points.
XAU/USD
The situation with gold remained the same as the pair is still located inside the local consolidation between two strong volume levels: the support 1282.80 and the resistance 1306.20.
As we can see from the chart above, the large volume accumulation is concentrated within this range, so the best decision is just to wait for a sharp and confident exit of the price from it. The breakout movement must be abrupt and on the large volume, which will be a more precise signal for entering the market.
The sentiment: this indicator affirms our trading scenario with USD/JPY, which is a good additional signal. The situation with EUR/USD, GBP/USD and AUD/USD didn’t change, but we must note the trend of the transition of traders into short positions. Also it is necessary to wait for a confident exit of prices from consolidation with XAU/USD and USD/CAD, only then we can use the sentiment as an additional technical sign.
