Daily Technical Forex Forecast 27.02.2019


EUR/USD

The Euro demonstrated an abrupt growth and broke out the previous level of resistance. Furthermore, the movement was supported by the large volume and the new level of support was created, it’s 1.1345. Therefore, we should consider exceptionally long positions.

We can enter the market after a stoppage of this correction and a resumption of an abrupt growth. A stop loss should be placed below the new level of support. A potential of the deal is around 100 points.

GBP/USD

The Pound showed strong and rapid growth on the large volume yesterday, which is an excellent bullish signal. It is also necessary to point out the new level of support 1.3140, from which a sharp upward price movement began. Considering all these factors, we should give preference to long positions.

Purchases can be opened after a small and smooth price correction down to get an acceptable entry point to the market. A stop loss should be placed slightly below the new level of support. The potential of the deal is more than 100 points.

USD/JPY

The Yen indicated a sharp fall supported by the increased volume, but it is still located within the local range between 2 strong volume levels. They are the support 11.26 and the resistance 111.19. Thus, we can consider new positions only after the sharp exit of the price from the range. Moreover, the breakout movement must be keen and supported by the large volume, which will be a more 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 is also trading within the local consolidation between the level of support 1.3075 and the level of resistance 1.3323. Therefore, we can consider new positions only after the sure and sharp exit of the price from the range. Besides it, the movement must be supported by the large volume, which will be a more secure and precise signal for entering the market.

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

AUD/USD

The Australian dollar showed a sharp rise on the increased volume and is currently trading nigh the level of resistance/upper limit of the local consolidation 0.7204. Thus, we can and should regard a scenario of its breakout, which will be a great bullish signal. The surge must be supported by the large volume, which will insure us against a fake breakout. A stop loss should be placed below the breakout volume bar. A potential of the deal is around 80 points.

XAU/USD

The price is still located inside the local range between 2 strong volume levels. They are the support 1322.20 and the resistance 1332.10.

Hence, our previous scenario remains relevant: we can consider new positions only after the breakout of one of these levels and keen exit of the price from the range. Besides it, the movement must be supported by the large volume, which will insure us against a fake breakout.

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

The sentiment: this indicator fully confirms our scenarios with EUR/USD, GBP/USD and AUD/USD, which is a nice additionaly signal (trading against the “crowd”). As with other instruments, we can open new positions only after the sure and keen exit of prices from local ranges.