Daily Technical Forex Forecast 27.07.2018

EUR/USD

The Euro demonstrated an abrupt fall on the large volume yesterday, but the general picture on the market has not changed: the price is still located in the local range between 2 strong levels. They are the support 1.1517 and the resistance 1.1827.

Therefore, the best scenario with the euro is just to wait for a confident and sharp exit of the pair from the consolidation. The breakdown movement must be keen and supported by the large volume, which will insure us against a false breakdown.

GBP/USD

The Pound also showed a sharp sink on the increased volume yesterday. However, the price is still locked inside the local consolidation between the support 1.2970 and the resistance 1.3345.

Hence, our previous scenario is still actual: we can open new positions only after an abrupt and rapid exit of the price from the range. The breakout move must be supported by the large volume, which will insure us against a false breakdown.

USD/JPY

The Yen adjusted up yesterday and is currently located in the local consolidation between the new support level 110.96 and the resistance 111.70 – 111.85. The large volume is concentrated in this range, so the best decision with this instrument is just to wait for a confident exit of the price from it. The breakout movement must be supported by the large volume, which will insure us against a false breakout and will be a more precise signal for entering the market.

USD/CAD

The Canadian dollar also corrected up yesterday and is trading near the new volume support level 1.3030 at the moment. Considering the previous abrupt fall on the large volume, we still need to give a slight preference to short positions.

We can enter the market only after the resumption of the fall and a sharp breakdown of the level of support on 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.

AUD/USD

The Australian dollar fell down strongly yesterday, but is still locked inside the local consolidation between the support 0.7318 and the resistance 0.7480. Hence, we can open new positions only after a keen breakout of one of these levels and the exit of the price from the range. The breakout movement should be supported by the large volume, which will be a more accurate signal for entering the market.

XAU/USD

Gold resumed its decline yesterday and is near the support level 1213.00 at the moment. Thus, our previous scenario remains relevant: we can consider a variant of a breakdown of this mark, which will be an excellent bearish signal and allow us to open sales with this instrument.

The breakdown movement must be swift and confident that it will be a more reliable signal for entering the market and will insure us against a false breakdown. 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 positions with USD/CAD and XAU/USD, which is a good additional signal. With all other currency pairs, we need to wait for a strong confirmation signals to appear and only after that we can consider new deals.

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