Daily Technical Forex Forecast 01.08.2018
EUR/USD
The Euro remained trading within the local consolidation between the support 1.1517 and the resistance 1.1827. It is also necessary to point out the presence of the large volume accumulation within this range. Therefore, the best solution with the Euro will be to wait for a confident and sharp exit of the price from the range and only after that we can consider new deals. 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.
GBP/USD
The same situation with the Pound as the price is also trading within the local range between two strong levels. They are the support 1.2970 and the resistance 1.3345. As can be seen from the volume chart, the large volume is concentrated within this consolidation.
Given these factors, we can open new positions only after the breakout of one of the levels and the sure exit of the pair from the consolidation. Moreover, the movement should be swift and supported by the large volume, which will insure us against a false breakout and will be a more reliable signal for entering the market.
USD/JPY
The Yen has shown a significant and rapid price increase. The movement was supported by the large volume, which only strengthens its importance. Now the pair is testing the resistance level/upper limit of the local range 111.70 – 111.85. Given the strong upward movement, we can consider the scenario of a breakout of this mark, which will be an excellent bullish signal and allow us to open long positions.
The breakdown movement must be swift and supported by the large volume, which will insure us from a fake breakout and will be a more accurate signal for opening purchases. A stop loss must be placed under the breakout volumebar. The potential of the deal is about 100 points.
USD/CAD
The price tested the support level/local minimum 1.3000, but could not break it. Nevertheless, the pair did not demonstrated any strong reaction and is still trading near this mark.
Thus, our previous scenario is still actual: we can open short positions, but only after a sure breakdown of this mark. The movement must be supported by the large volume. A stop loss should be placed just above the breakdown volume bar. The potential of the deal is more than 100 points.
AUD/USD
Nothing has changed with the Australian dolla as the pair is still within the local consolidation between the support 0.7318 and the resistance 0.7480. Hence, we can regard new trading scenarios only after the sur exit of the pair from the range. The breakout move must be rapid and supported by the large volume, which will insure us against a false breakdown and will be a stronger signal for opening new deals.
XAU/USD
Gold carried on trading inside a small, local range just above the support/local minimum level 1213.00. Given the presence of a strong downtrend, we still should give a little preference to short positions with this currency pair.
We can enter the market after the resumption of the drop and a sharp breakdown of the level of support. The move must be supported by the large volume, which will be a more precise signal for entering the market. A stop loss should be located above the breakdown volume bar. The potential of the deal is more than 150 points.
The sentiment: this indicator totally affirms our trading scenarios with USD/JPY and XAU/USD, which is a nice additional signal. As with the Canadian dollar the situation is 50/50, so we need to wait for a strong confirmation signal to appear.
