Daily Technical Forex Forecast 20.07.2018


EUR/USD

The Euro showed a rapid price increase yesterday, moreover, the upward movement was on the large volume. On the other hand, the pair is still trading in the middle of the local consolidation, in which the large volume is concentrated, so new positions can be opened only after a confident and sharp exit of the price from it.

volume euro eng
The breakout movement must be supported by the large volume, which will be a more accurate and reliable signal for entering the market, and will also insure us against a false breakdown. While the pair is trading within the range, it’s better to stay out of the market.

trade euro eng

GBP/USD

The Pound carried on falling and broke down the previous support level, which is a strong bearish signal. However, further drop was stopped by the creation of the new volume level 1.2970, after which the price adjusted upwards.

volume gbp

Considering the presence of a strong local downtrend, we still need to give advantage to short positions. We can enter the market after the resumption of the fall and a sharp breakdown of the new level of support. The move should be supported by the large volume. A stop loss must be located just above the breakdown volume bar. The potential of the deal is more than 120 points.

sell gbp eng

USD/JPY

The Yen demonstrated a significant fall on the large volume yesterday. We also need to point out 2 new strong levels: the support 112.18, which contains the large volume and the resistance 113.08, from which the sharp drop began.

The pair is located in the local consolidation between these levels at the moment, so new positions can be opened only after a sure exit of the price from it. The breakout move must be supported by the large volume, which will be a more reliable signal for entering the market.

trade jpy

USD/CAD

The Canadian dollar resumed rising, besides it, the move was abrupt and on the large volume, which is an excellent bullish signal. But, unfortunately, the volume was evenly spread throughout the chart, so we can’t highlight any concrete level or zone.

However, we must consider exceptionally long positions. We can enter the market after a small correction and a resumption of the swift growth on the large volume, which will be a more precise signal for entering the market. A stop loss must be placed at the beginning of this movement. The potential of the deal is more than 150 points.

buy cad

AUD/USD

The Australian dollar tested the level of support/the lower limit of the local consolidation 0.7318 yesterday, but could not break it down. At the moment the pair is still located inside the local range between this mark and the resistance 0.7480. Thus, our previous scenario remains relevant: new positions can be opened only after a sure exit of the price from the range. The breakout movement must be confident and supported by the large volume, which will be a more reliable signal for entering the market.

trade aud

XAU/USD

The price went on falling, but further downward move was stopped by the new support level 1213.00, after which the price corrected up. However, the pair has already resumed the decline and is trading near this mark again, so we can regard a scenario of its breakdown, which will be an excellent bearish signal.

volume gold

The move should be keen and sure, and also supported by the large volume that will insure us against a false breakdown and will be a more secure 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.

sell gold

The sentiment: this indicator totally affirms our positions with the Pound, the Canadian dollar and gold, which is an excellent additional signal. With other instrument, it is necessary to wait for the exit of prices from consolidations and only after that we can regard new trading scenarios.

sentiment