Daily Technical Forex Forecast 08.03.2019


EUR/USD

The Euro showed a significant and sharp drop of the price on the large volume and broke down the previous support level, which is a strong bearish signal. It is also necessary to point out the new resistance level 1.1256 – 1.1267, in which the large volume is concentrated. Taking into account all these factors, we should consider exceptionally short positions with this currency pair.

Sales can be opened after a small and smooth price correction upwards in order to get a more profitable entry point into the market. A stop loss must be placed slightly above the new resistance level. The potential of the deal is more than 100 points.

GBP/USD

The similar situation with the Pound as the price fell down and broke down the previous support level. The movement was on the large volume, which is a great bearish signal. Besides it, we need to point out the new resistance 1.3139, which contains the large volume.

Considering all these factors, we should give advantage to short positions. We can enter the market after a smooth upward correction, in order to get a more profitable entry point. A stop loss should be placed above yesterday’s maximum. Our first target is the level of support 1.2985 – 1.2998.

USD/JPY

The Yen demonstrated an abrupt sink supported by the large volume, which is a good bearish signal. On the other hand, there is a strong local uptrend and the price is locked inside the local range between the support 110.26 and the resistance 112.00. Hence, the best solution with the Yen is just to wait for the exit of the price from this consolidation and only after that we can open new positions. 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 trading inside this range, we’d better stay out of the market.

USD/CAD

The Canadian dollar continued rising and is still trading above the level of support 1.3375, so our previous scenario remains actual: we should give preference to long positions. We can enter the market after a smooth and slight downward correction of the pair, 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.

AUD/USD

The Australian dollar resumed falling and broke down the previous level of support, which is a great bearish signal. Moreover, the drop was on the large volume, which only strengthens its importance. Given all these factors, we should give preference to short positions. We can enter the market after a slight upward correction of the pair, in order to obtain a better entry point. A stop loss should be placed above the yesterday’s maximum. A potential of the deal is more than 80 pips.

XAU/USD

After the test of the level of support 1282.00, the price corrected upwards. The growth was smooth and on the small volume, you can see it here. Given that the price is still located near the level of support, we can and should consider a scenario of its breakdown, which will allow us to open short positions.

The drop of the price must be confident and keen + supported by the large volume, which will be a more precise signal for entering the market. A stop loss should be placed above the breakdown volume bar. A potential of the deal is more than 150 points.

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

The sentiment: this technical indicator totally confirms all our trading scenarios today (trading against the “crowd”), which is a great additional signal for us. As with the Yen, we can open new positions only after the sure exit of the price from the consolidation.

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