Daily Technical Forex Forecast 21.08.2018


EUR/USD

The Euro showed a sharp increase and is testing the resistance level/the upper limit of the local consolidation 1.1478  at the moment. This gives us an opportunity to consider the scenario of a breakout of this mark, which will be an excellent signal for opening long positions with this currency pair.

volume euro eng

The movement must be confident and swift, and also supported by the large volume, which will insure us against a false breakout and will be a more accurate signal for entering the market. A stop loss should be placed under the breakout volume bar. The potential of the deal is about 120-130 points.

buy euro eng

GBP/USD

The Pound also grew up yesterday, but the movement was on the small volume, so we can’t regard long positions now. Considering the presence of a strong downtrend, we still should give a small preference to sales.

volume gbp

We can enter the market after a stoppage of the rise and a resumption of the drop of the price, but the move should be supported by the large volume, which will be a more secure signal for entering the market. A stop loss must be located a little bit above the beginning of this movement. The potential of the deal is more than 120 points.

sell gbp

USD/JPY

The Yen demonstrated an abrupt fall and broke down the previous support level. However, we can’t open short positions, since the move was on the small volume. In spite of this, we still should give advantage to sales.

Short positions can be opened after a continuation of the sink, but the movement must be supported by the large volume, which will be a more precise and secure signal for entering the market. A stop loss must be located above the beginning of this drop. The potential of the deal is about 150 points.

sell jpy

USD/CAD

The Canadian dollar went on trading inside the local consolidation between the support level 1.2980 and resistance level 1.3165. Hence, our previous scenario remains actual: we can open new deals only after a sure and keen exit of the price from the range. The breakout movement should be abrupt and supported by the large volume, which will insure us against a fake breakout.

trade cad

AUD/USD

The Australian dollar carried on adjusting up, but the pair is still located within the local range between two strong levels. They are the support 0.7211 and the resistance 0.7439. Therefore, we can regard new trading scenarios only after a confident breakout of one of these levels and the exit of the price from the consolidation. The breakout move should be rapid and supported by the large volume, which will be a more secure and precise  signal for entering the market.

trade aud

XAU/USD

Gold also showed a keen rise yesterday, but the movement was on the small volume, so we should not regard purchases at the moment. Beside it, we should point out a strong downtrend with this instrument, so we still should give a little advantage to short positions.

volume gold

Sales can be opened after the resumption of an abrupt fall on the large volume, which will be a more precise signal for entering the market. A stop loss must be located just above the beginning of this move. The potential of the deal is more than 150 points.

sell gold

The sentiment: the mood of the market totally affirms our positions with the Pound and the Yen, which is a good additional signal for us. With gold and the Euro, we need to wait for the appearance of strong additional signals. As with other instruments, we should wait for a sharp exit of the price from ranges and only after that we can open new positions.

sentiment