Daily Technical Forex Forecast 17.07.2018

EUR/USD

The Euro continued rising, but the pair is still located inside the local consolidation between the support level 1.1517 and the resistance level 1.1827. Beside it, we need to point out the presence of the large volume accumulation within this range. Hence, the best decision is just to wait for a sure and keen exit of the price from the local consolidation. The movement must be supported by the large volume that will insure us from a false breakdown and will be a more precise signal for entering the market.

GBP/USD

Nothing has changed with the Pound as the price is still trading inside the local consolidation between two strong levels. They are the support 1.3066 and the resistance 1.3345. Thus, our previous scenario remains actual: we can open new deals only after a confident breakout of one of these levels and the exit of the price from the range. The breakout movement should be rapid and supported by the large volume, which will be a more reliable signal for entering the market.

USD/JPY

The Yen is located inside the small local consolidation at the moment. However, considering the strong volume support level 111.51 – 111.61 and the sharp growth of the pair on the large volume last week, we still need to give advantage to long positions.

We can enter the market after a resumption of the abrupt growth of the price on the large volume, which will be a more precise and secure signal for opening purchases. A stop loss must be located under the beginning of this movement. The potential of the deal is more than 120 points.

USD/CAD

The pair fell down yesterday and is trading within the volume support level 1.3112 – 1.3143 at the moment, so we can deliberate 2 possible trading scenarios:

The first one: a sure breakdown of this mark, which will be an excellent bearish signal and will allow us to open short positions. A stop loss should be placed just above the breakdown bar. The potential of the deal is about 100-110 points.

The second one: a sharp rebound of the price up on the large volume, which will be an excellent signal for opening long positions. A stop loss should be placed under the support level. The potential of the deal is more than 150 points.

AUD/USD

The Australian dollar is locked within the local range between the support level 0.7318 and the resistance level 0.7480 as well. Therefore, it is necessary to wait for a confident breakout of one of these levels and the exit of the price from the consolidation. Only is such case we can regard  new trading scenarios with this currency pair. The breakout move must be prompt and supported by the large volume, which will be a more accurate signal for entering the market.

XAU/USD

The price of gold showed a drop and again tested the global support level 1240.00 yesterday, but failed to break it down and is currently trading near this mark. Thus, we can still consider the scenario of the breakdown of the level of support, which will allow us to open short positions with gold.

This movement should be sharp, confident, and also supported by the large volume that will insure us against a false breakdown and will be a more reliable and strong 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.

The sentiment: the mood of the market affirms our trading scenarios with the Yen and gold, which is a great additional signal. As with other currency pairs, we need to wait for exit of prices from local ranges and only after that we can regard new positions.

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