Daily Technical Forex Forecast 25.07.2018

EUR/USD

The Euro did not demonstrated any significant movements yesterday and is still located within the local consolidation between the support level 1.1517 and the resistance level 1.1827, in which the large volume is concentrated.

Therefore, our previous scenario remains relevant: it is necessary to wait for a sure and abrupt exit of the pair from the local range and only after that we can regard new deals. The breakout move must be supported by the large volume, which will insure us against a false breakdown.

GBP/USD

The Pound continued its growth yesterday, but the upward movement was on the small volume, which does not allow us to open long positions. In addition, the price is still inside the local range between 2 strong levels. They are the support 1.2970 and the resistance 1.3345.

Given the current situation with this currency pair, we should wait for a confident and prompt exit of the price from the consolidation and only after that it is possible to consider new deals. The breakout movement must be supported by the large volume, which will be a more accurate and reliable signal for entering the market.

USD/JPY

The Yen carries on trading a little bit below the volume resistance level 111.70 – 111.85, so we still need to give preference to short positions. Sales can be opened after the resumption of a sharp drop on the large volume, which will be an excellent bearish signal. A stop loss should be placed a little above the resistance level. The potential of the deal is 90-100 points.

USD/CAD

The price is still located near the strong support level 1.3112 – 1.3143, in which the large volume is concentrated. Hence, we can regard 2 possible trading scenarios now:

1. An abrupt price rebound from this mark. The move must be supported by the large volume, which will be a more secure signal for opening purchases. A stop loss should be placed under the support level. The potential of the deal is more than 150 points.
2. A breakdown of the support level on the large volume, which will be an excellent bearish signal. A stop loss should be placed just above the breakdown volume bar. The potential of the deal is more than 120 points.

AUD/USD

Nothing has changed with the Australian dollar as the pair is still locked in the local range between the support level 0.7318 and the resistance level 0.7480. Hence, the best decision with this pair will be to wait for a confident exit from the consolidation. The breakout movement must be supported by the large volume, which will insure us against a false breakout and will be a more accurate signal for entering the market.

XAU/USD

Gold is trading in the small consolidation just above the support level 1213.00 at the moment, so our previous scenario remains actual: we can open sales after a sharp breakdown of this mark.

The breakdown movement must be supported by the large volume, which will be a more accurate and reliable 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 fully confirms our scenarion with gold, which is  good additional signal. With USD/CAD, we should give preference to purchases, but firstly it is necessary to wait for the reaction of the price on the support. With all other currency pairs, we need to wait for strong confirmation signals to appear and only after that we can consider new positions.