Daily Technical Forex Forecast 26.02.2019

EUR/USD

The Euro continued growing and is currently testing the resistance level 1.1357. Thus, our previous scenario remains relevant: we can and should regard a scenario of its breakout, which will be a great bullish signal.

The surge of the price must be keen and supported by the large volume, which will insure us against a false breakout. A stop loss should be placed below the breakout volume bar. A potential of the deal is around 100 points.

GBP/USD

The Pound showed a significant and sharp rise of the price and broke out the previous resistance level yesterday, which is an excellent bullish signal. However, the upward movement was on the small volume, so we can not allocate any new volume level or zone.

Thus, we should give preference to purchases, but we can enter the market after the continuation of the strong growth on the large volume, which will be a more accurate signal to enter the market. A stop loss should be placed slightly below this movement. The potential of the deal is more than 120 points.

USD/JPY

The Yen demonstrated a sharp growth, but after the test of the level of resistance 111.19, the price sharply corrected downwards. Now the pair is located in the middle of the local range between the level of support 110.26 and the resistance 111.19. Hence, the best solution with this instrument is just to wait for the breakout of one of these levels and the sharp exit of the price from the range and only after that we can consider new positions. Furthermore, the movement must be supported by the large volume, which will be an accurate signal for entering the market.

While the price is trading inside this range, we’d better stay out of the market.

USD/CAD

The Canadian dollar showed a sharp rise yesterday, but the price is still located within the local consolidation between 2 strong levels. The first one is the level of support 1.3075, the second one is the level of resistance 1.3323. Hence, the best solution with this pair is just to wait for the exit of the price from the range and only after that we can open new positions. Moreover, the move must be keen and supported by the large volume, which will be a more reliable signal for entering the market.

Until that, we’d better stay out of the market.

AUD/USD

The same situation with the Australian dollar as the price is located within the local consolidation between 2 strong volume levels. They are the support level 0.7058 and the resistance level 0.7204. Therefore, we can open new positions only after the sharp and confident exit of the price. Besides it, the breakout movement must be supported by the large volume, which will be a more secure and precise signal for entering the market.

While the price is locked inside the range, we’d better skip this instrument from our trading plan.

XAU/USD

Nothing has changed with gold as the price is still locked within the local range between 2 strong volume levels. They are the level of support 1322.20 and the level of resistance 1332.10.

Thus, we can consider new trading scenarios only after the sharp exit of the price from it. Besides it, the movement must be supported by the large volume, which will be a more reliable and accurate signal for entering the market.

While the price is locked inside this range, we’d better omit this instrument from our trading plan.

The sentiment: the mood of the market totally affirms our scenarios with EUR/USD and GBP/USD, which is a good additional signal (trading against the “crowd”). As with other instruments, we can open new positions only after the sharp exit of prices from local consolidations.

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