Daily Technical Forex Forecast 04.01.2018


EUR/USD

The Euro showed a sharp increase of the price on the large volume yesterday. However, despite this move, the pair is still trading within the local range between 2 strong levels. They are the support 1.1267 and resistance 1.1463. It is also worth noting that the large volume is concentrated within this consolidation.

Taking into account all these factors, we can open new deals only after a confident and rapid exit of the price from this range. Moreover, the movement must be supported by the large volume, which will insure us against a false breakout.

GBP/USD

The Pound grew up yesterday, but the move was on the medium volume, so that we can’t allocate any new volume level or zone. Besides it, the pair is trading inside the local consolidation between the support level 1.2539 and the resistance level 1.2750.

Hence, we can consider new deals only after the exit of the price from the local range. The move must be sharp and supported by the large volume, which will be a more secure and accurate signal for entering the market.

USD/JPY

The Yen also corrected upwards after the formation of the new support level 107.28. However, the move was on the small volume + there is a strong downtrend, so that we still should give advantage to short positions. We can enter the market after the resumption of the fall and the keen breakdown of the support level. The movement should be supported by the large volume, which will insure us against a false breakdown. A stop loss should be placed above the breakdown volume bar. A potential of the deal is more than 100 points.

USD/CAD

The Canadian dollar demonstrated an abrupt drop on the large volume. Furthermore, the price broke down the previous support level, which is a good bearish signal. We also should point out the new resistance level 1.3547. Thus, we should consider a scenario of opening short positions. We can enter the market after a smooth upward correction, in order to get a better entry point. A stop loss should be placed above the resistance. A potential of the deal is around 110 points.

AUD/USD

The Australian dollar is locked inside the local range between 2 strong volume levels. They are the support 0.6979 and the resistance 0.7073. Therefore, we can consider new deals only after the sure breakout of one of these levels and the exit of the pair from this consolidation. The move should be supported by the large volume, which will be a more secure signal for entering the market.

XAU/USD

The price went on growing, furthermore, the rise was supported by the large volume, which only increases its role. Therefore, we can state that the uptrend with gold continues, so that we should regard exceptionally long positions.

We can enter the market after a smooth downward correction of the price, in order to get a better entry point. A stop loss should be placed below the yesterday’s minimum. A potential of the deal is more than 150 points.

The sentiment: the mood of the market confirms our scenarios with the Yen and gold, which is a good additional signal. As with the Canadian dollar, the situation is ambiguous, so that we should be more careful. We should wait for the exit of prices from local ranges and only after that we can open new positions with other currency pairs.

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