Daily Technical Forex Forecast 26.07.2018

EUR/USD

The Euro demonstarted a sharp growth on the increased volume yesterday, which is a good bullish signal. However, the pair is still located inside the local consolidation between the support 1.1517 and the resistance 1.1827.

Hence, we can consider new positions here only after a sure exit of the price from the local range. The breakdown movement should be rapid and supported by the large volume, which will insure us against a false breakout.

GBP/USD

The Pound carired on rising, but the upward movement was on the small volume, so we can’t highlight new levels or zones. Beside it, the pair is still locked inside the local consolidation between the support 1.2970 and the resistance 1.3345.

Therefore, our previous scenario is still actual: it is necessary to wait for a confident exit of the price from the consolidation and only after that we can open new positions. The breakout movement should be supported by the large volume, which will be a more precise and accurate signal for entering the market.

USD/JPY

The Yen went on its sink, but the drop was on the small volume, so we can’t pointe out any new level. However, this is an excellent bearish signal and we should give advantage to short positions. We can enter the market only after a continuation of the fall, but the movement should be supported by the large volume, which will be a more accurate signal. A stop loss should be placed a little above the beginning of the fall. The potential of the deal is more than 100 points.

USD/CAD

The Canadian dollar showed a sharp drop of the price and broke down the previous support level yesterday, which is an excellent bearish signal. This movement was supported by the large volume, which only strengthens its importance. Given all these factors, we should give preference to short positions. We can enter the market after a small and smooth correction of the price up, to get a more advantageous entry point. A stop loss should be set just above the start of yesterday’s breakout movement. The potential of the deal is more than 120 points.

AUD/USD

The Australian dollar grew up significantly yesterday, but is still locked within the local consolidation between the support 0.7318 and the resistance 0.7480. Therefore, our previous scenario is still relevant: we can open new positions only after the exit of the price from the consolidation. The breakout movement should be sharp and supported by the large volume that will insure us from a false breakout and will be a more secure and precise signal for entering the market.

XAU/USD

Gold continued correcting upwards, but the move was supported by the medium volume, and given the strong downtrend, we can’t open long positions. Hence, the best scenario with gold is just to wait for the resumption of the price sink and a breakdown of the support level 1213.00.

The move should be abrupt and confident, and also supported by the large volume, which will be a more precise signal for entering the market. A stop loss must be placed just above the breakdown volume bar. The potential of the deal is more than 150 points.

If the price continues correcting upwards on the small volume, we better stay out of the market.

The sentiment: this indicator confirms our deals with USD/CAD, USD/JPY and XAU/USD, which is an excellent additional signal. With all other currency pairs, we need to wait for strong confirmation signals to appear and only after that we can consider new deals.

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