Daily Technical Forex Forecast 01.03.2019


EUR/USD

The Euro sharply corrected downwards after the formation of the new level of resistance 1.1416. The drop of the price was supported by the large volume; you can see it here. Now the pair is located in the local consolidation between the previous level of support 1.1345 and the new resistance.

Thus, we can open new positions only after the confident breakout of one of these levels and the sharp exit of the price from the range. Moreover, the breakout movement must be keen and supported by the large volume, which will insure us against a false breakout.

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

GBP/USD

The Pound also corrected downwards yesterday. Besides it, we need to point the new volume level of resistance 1.3304, which contains the large volume. Nevertheless, given the presence of the strong local uptrend, we should give preference to long positions.

We can enter the market only after the resumption of an abrupt rise and the confident breakout of the new level of resistance. The movement must be supported by the large volume. A stop loss should be placed below the breakout volume bar. A potential of the deal is more than 100 points.

If the price continues falling down, we’d better stay out of the market.

USD/JPY

The Yen showed a huge growth supported by the large volume and broke out the previous resistance level, which is a great bullish signal. Moreover, we need to point out the new volume level of support, it’s 111.30. Considering all these factors, we should give advantage to long positions. We can enter the market after a smooth downward correction, in order to get a more profitable entry point. A stop loss should be placed below the level of support. A potential of the deal is more than 100 points.

USD/CAD

The Canadian dollar continues trading within the local range between 2 strong volume levels. They are the support 1.3075 and the resistance 1.3323. Therefore, our previous scenario remains relevant: we can open new positions only after the sharp and sure exit of the price from the consolidation. Furthermore, the movement must be supported by the large volume, which will be a more accurate signal for entering the market.

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

AUD/USD

The Australian dollar restarted falling. Moreover, the drop was on the large volume. However, the price is still locked within the local consolidation between 2 strong levels. The first one is the support 0.7058, the second one is the resistance 0.7204. Hence, the best solution with this pair is just to wait for the confident and abrupt exit of the price from the range. The breakout movement must be 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.

XAU/USD

Gold demonstrated an abrupt drop supported by the large volume and now is trading near the level of support/lower boundary of the local range 1303.40. Thus, we can and should regard a scenario of its breakdown, which will be a great bearish signal and will allow us to open short positions.

The drop must be confident, sharp and supported by the large volume, that will be a more secure and precise signal for entering the market. A stop loss should be placed above the breakdown volume bar. Our net target is the level 1297.00.

The sentiment: this technical indicator confirms our trading scenarios with GBP/USD and USD/JPY, which is a great addition signal (trading against the “crowd”). The contrary situation with gold, so that we should be more careful trading this instrument. As with other pairs, we can open new positions only after the sharp exit of prices from local ranges.

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