Daily Technical Forex Forecast 18.07.2018
EUR/USD
The Euro dropped down yesterday, but is still located inside the local range between the support level 1.1517 and the resistance level 1.1827. Therefore, our previous scenario is actual: we must wait for a confident exit of the price from the consolidation and only after that we can open new positions. The move must be abrupt and supported by the large volume, which will be a more precise and secure signal for entering the market. While the price is trading within the range, we should stay out of the market.
GBP/USD
The Pound demonstrated a huge sink on the large volume and tested the support level/lower boundary of the local consolidation 1.3066 yesterday. The pair is trading near this mark at the moment, which gives us the opportunity to regard a scenario of its breakdown. This will be a great bearish signal.
The move should be keen and sure, and also supported by the large volume, which will insure us against a fake breakdown. A stop loss should be located just above the breakdown volume bar. The potential of the deal is more than 150 points.
USD/JPY
The Yen carried on its rise, besides it, the upward move was supported by the large volume, which is an excellent bullish signal. Hence, we should give advantage to long positions with the Yen at the moment. We can enter the market after a small and smooth correction of the price down to get a more profitable entry point. A stop loss must be placed below the yesterday’s sharp growth. The potential of the deal is more than 110 points.
USD/CAD
The pair also showed an abrupt growth yesterday. We also should point out the strong volume support level 1.3112 – 1.3143. Therefore, we should give preference to purchases. We can enter the market after a small and smooth correction of the price down to obtain a better entry point. A stop loss should be located under the support level. The potential of the deal is more than 150 points.
AUD/USD
Nothing has changed with the Australian dollar as the price is still located inside the local consolidation between the support level 0.7318 and the resistance level 0.7480. Hence, our previous scenario is actual: we need to wait for a confident exit of the price from the range and only after that we can consider new positions. The breakout movement must be rapid and on the large volume, which will be a more precise signal for entering the market.
XAU/USD
Gold showed a significant and sharp drop on the very large volume and broke down the previous global level of support yesterday. This is a strong bearish signal, so we should consider only a scenario of opening short positions with this instrument at the moment.
We can enter the market after a small and smooth upward price correction to get a more profitable entry point. A stop loss should be placed a little higher than yesterday’s breakdown volume bar. The potential of the deal is more than 150 points.
The sentiment: this indicator totally affirms all our positions, which is a good additional confirming signal. As with EUR/USD and AUD/USd, we need to wait for the exit of prices from local consolidations and only after that we can regard new deals with these instruments.
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