Daily Technical Forex Forecast 05.09.2018

EUR/USD

The Euro corrected up after the creation of the new volume support level 1.1533 yesterday. Now the pair is located in the small local range between this mark and the resistance level 1.1628 – 1.1648. Hence, we can consider new positions only after a confident breakout of one of these levels and the exit of the price from the consolidation.

The breakout move should be swift and supported by the large volume, which will insure us against a fake breakout and will be a more precise and secure signal for entering the market.

GBP/USD

The Pound also adjusted up after the creation of the new volume support level 1.2818. However, considering the previous sharp fall of the pair, we still should give advantage to short positions.

We can enter the market after the resumption of a sharp drop and a confident breakdown of the new level of support. The breakdown move must be supported by the large volume, which will be a more secure signal for entering the market. A stop loss must be placed just above the breakdown volume bar. The potential of the deal is about 130 points.

USD/JPY

The Yen carried on rising and is currently located near the resistance level/upper boundary of the local consolidation 111.94. The growth was abrupt and on the increased volume, so we can regard a scenario of a breakout of this mark, which will be a great bullish signal. A stop loss should be placed just below the breakout bar. The potential of the deal is around 100-110 points.

USD/CAD

The Canadian dollar grew up and broke out the previous resistance level, but could not continue its upward move as the new volume level 1.3203 was created, after which it smoothly corrected down. However, considering the keen rise of the pair on the increased volume, we should give advantage to long positions.

We can enter the market after a sure and swift breakout of the new level of resistance on the large volume, which will be a more reliable signal for entering the market. A stop loss should be placed just below the breakout volume bar. The potential of the deal is about 100 points.

AUD/USD

The Australian dollar corrected up after the creation of the new volume support level 0.7172 yesterday. However, considering the presence of a strong downtrend, we still should give advantage to a scenario of opening sales. We can enter the market after a confident 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 100 points.

XAU/USD

Gold continued its downward movement and broke down the previous resistance level, which is an excellent bearish signal. Nevertheless, further decline was stopped by the formation of the new support level 1190.00, in which the large volume is concentrated. Given these facts, we can again open short positions only after a sure breakdown of this level.

The breakdown movement must be confident and rapid, and also 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 totally affirms all our trading scenarios, which is a good additional signal. As with EUR/USD, we should wait for the exit of the pair from the local consolidation and only after that it is possible to regard new deals.

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