Daily Technical Forex Forecast 04.07.2018

EUR/USD

The Euro resumed its growth, but the movement was on the small volume. Moreover, the pair is still trading inside the local consolidation between two strong volume levels. They are the support 1.1517 and the resistance 1.1827. It should also be noted that the large volume accumulation is concentrated in this range.

Given all these factors, the best solution will be to wait for a confident and sharp exit of the price from the consolidation. The movement should be supported by the large volume that will insure us from a false breakdown and will be a more accurate signal for entering the market.

GBP/USD

The price grew up sharply yesterday, but the movement was on the small volume. Besides it, the pair is still located within the local range between the support level 1.3066 and the resistance level 1.3291.

Hence, the best decision with the Pound is just to wait for a sure and sharp exit of the price from the consolidation. The breakout movement should be supported by the large volume, which will be a more precise signal for entering the market.

USD/JPY

The price tested the resistance level, but failed to break it out and then showed an abrupt drop. The pair is located inside the local consolidation between the support 109.32 and the resistance 111.00 at the moment. Therefore, we can regard new positions only after a sure and keen breakout of one of these levels and the exit of the pair from the range. The movement must be supported by the large volume that will insure us from a fake breakout and will be a more secure signal for entering the market.

USD/CAD

The pair is testing the support level/lower limit of the local range 1.3138. Hence, we can regard the scenario of its breakdown, which will be a strong bearish signal. The breakout movement must be abrupt and supported by the large volume, which will be a more reliable signal for entering the market. A stop loss must be located just above the breakdown volume bar. The potential of the deal is about 100 points.

AUD/USD

The Australian dollar grew up sharply yesterday, but is still located within the local range between two strong levels: the support 0.7318 and the resistance 0.7440. Therefore, our previous scenario remains actual: we should wait for a sure exit of the price from the local consolidation and only after that we can regard new deals. The move should be supported by the large volume, which will be a more precise signal for entering the market.

XAU/USD

The price showed a sharp growth yesterday, but the movement was on the small volume, so we can’t regard long positions at the moment. Moreover, there is a strong downtrend with gold.

We also need to point out a global support level 1240.00. Therefore, it’s not the best situation for trading gold, so we must wait for the appearance of the large volume and the creation of new levels, which will consent us to consider new trading scenarios.

The sentiment: the mood of the market shows that we should give advantage to long positions with USD/JPY and USD/CAD and short positions with other pairs. However, we need to wait for exit of prices from consolidations and only after that we will be able to consider new trading scenarios.

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