Daily Technical Forex Forecast 18.09.2018

EUR/USD

The Euro showed a significant and sharp price increase yesterday. Now the pair is trading near the resistance level/local maximum 1.1718. This gives us an opportunity to consider a scenario of a breakout of this mark, which will be an excellent signal for opening long positions with this instrument.

The breakout 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 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.

GBP/USD

The Pound grew up strongly and broke out the previous resistance level, which is an excellent bullish signal. However, the breakout movement was on the small volume, so we can’t open long positions at the moment. It is necessary to wait for an additional signal.

Such a signal is a continuation of the surge of the price, but the move must be on the large volume, which will be a more secure signal for opening purchases. A stop loss should be located a little below the start of a sharp rise. The potential of the deal is about 130-140 points.

USD/JPY

The Yen went on trading near the resistance/local maximum level 112.10. Hence, our previous scenario remains actual: we can consider purchases only after a confident breakout of this mark. The breakout move must be rapid and supported by the large volume, which will be a more precise signal for entering the market. A stop loss should be placed under the breakout volume bar. The potential of the deal is about 100-110 points.

USD/CAD

The Canadian dollar carried on adjusting up, but the breakout move was on the small volume, so we can’t regard purchases. Considering the fact that the pair is located near the support level 1.2987, we can deliberate a scenario of its breakdown. It will be a good bearish signal. The breakdown movement must be abrupt and on the large volume. A stop loss should be placed just above the breakdown volume bar. The potential of the deal is about 130 points.

AUD/USD

Nothing has changed with the Australian dollar as the pair is still located inside the local conslidation between 2 strong volume levels. They are the support 0.7100 and the resistance 0.7230. Therefore, we can open new positions only after a sure exit of the price from the range. The breakout movement must be sharp and supported by the large volume, which will insure us against a fake breakout and will be a more precise signal for entering the market.

XAU/USD

Gold demonstrated a sharp rise and is currently located inside the local consolidation between the support level 1188.20 and the resistance level 1215.70. Given that the large volume is concentrated within this consolidation, we can consider new trading scenarios only after the sharp exit of the pair from it.

The breakout movement must be rapid and supported by the large volume, which will insure us against a fake breakdown and will be a more precise and secure signal for entering the market.

The sentiment: this indicator totally affirms all our trading scenarios, except the one with the Canadian dollar. With this instrument, the situation is 50/50, so we should be extra careful. With other pairs, it is necessary to wait for a sure exit of prices from ranges and only after that it is possible to open new positions.

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