Daily Technical Forex Forecast 07.03.2019


EUR/USD

The Euro is still located within the local consolidation between the support 1.1244 and the resistance 1.1416. The large volume is concentrated inside this range; thus we can consider new positions only after the sharp exit of the price from it.

Besides it, the breakout movement must be keen and supported by the large volume, which will be a more reliable signal for entering the market.

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

GBP/USD

The similar situation with the Pound as the price is also locked within the local range between 2 strong volume levels. They are the level of support 1.3100 and the level of resistance 1.3304. Thus, 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 open new positions.

Besides it, the breakout movement must be keen, sure and supported by the large volume, which will insure us against a false breakout and will be a more reliable signal for entering the market.

Until that, while the price is trading inside the consolidation, we’d better stay out of the market.

USD/JPY

The Yen corrected downwards yesterday, but the movement was smooth and on the small volume. Given that the price is still locked near the level of resistance 112.00 and the recent sharp growth on the large volume, we still should give a slight advantage to a scenario of the breakout of this level, which will be a great bullish signal. The surge of the price must be confident, keen and supported by the large volume. A stop loss should be located below the breakout volume bar. A potential of the deal is more than 100 point.

If the price continues correcting downwards, we’d better stay out of the market.

USD/CAD

The Canadian dollar showed a significant and sharp increase of the price on the very large volume, which is an excellent bullish signal. In addition, it is necessary to point out the new volume support level of 1.3375, from which a sharp upward 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 a better entry point. A stop loss should be placed slightly below the new level of support. The potential of the deal is more than 100 points.

AUD/USD

The Australian dollar corrected upwards after the creation of the new volume level of support 0.7022. However, the price is still trading nigh this mark and considering the recent abrupt drop, we can reckon a scenario of its breakdown, which will be a great bearish signal. The sink must be supported by the large volume, that will be a more reliable signal for entering the market. A stop loss should be placed above the breakdown volume bar. A potential of the deal is more than 80 pips.

XAU/USD

The price is trading in the local consolidation near the level of support/lower boundary of the local range 1282.00. Given, the presence of the local downtrend, we can and should consider a scenario of its breakdown, which will be a great bearish signal.

The drop of the price must be abrupt and supported by the large volume. A stop loss should be placed above the breakdown volume bar. A potential of the deal is more than 150 points.

The sentiment: the mood of the market fully confirms all our trading scenarios today, that is a great additional signal. As with the Euro and Pound, our previous scenario remains the same: we can open new deals only after the sure exit of pairs from local ranges.