Daily Technical Forex Forecast 26.03.2019


EUR/USD

EUR/USD corrected upwards yesterday, but the movement was on the small volume, so that we can’t consider long positions at the moment. Moreover, the price is still located near the new level of support 1.1278. Therefore, our previous scenario remains relevant: we can and should regard a breakdown of this level, which will allow us to open short positions.

The breakdown movement must be keen and supported by the large volume, which will be a more reliable signal for entering the market. A stop loss should be placed above the breakdown volume bar. Our first target is the level 1.1180.

GBP/USD

Nothing has changed with the Pound as the price is still located inside the local range, where the large volume is concentrated. The boundaries of this consolidation are the support 1.2985 – 1.2998 and the resistance 1.3335.

Therefore, 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. Furthermore, the breakout movement must be supported by the large volume, which will be a more secure signal for entering the market.

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

USD/JPY

The Yen tested the level of support 109.82, but failed to break it down. Nevertheless, the pair is still located near this mark, so that our previous scenario remains relevant: we can reckon a scenario of its breakdown, which will be a great bearish signal. The drop of the price must be confident, keen 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 100 points.

USD/CAD

The Canadian dollar corrected downwards yesterday and now is trading inside the local consolidation between 2 strong volume levels. The first one is the support 1.3248, the second one is the resistance 1.3463. Thus, we can open new positions only after the sharp and sure exit of the pair from the range. Moreover, the breakout move must be supported by the large volume, which will be a more secure signal for entering the market.

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

AUD/USD

The Australian dollar goes on trading within the local range between the level of support 0.7008 and the level of resistance 0.7165. Hence, we can reckon new trading scenarios only after the confident and keen exit of the price from the range. Furthermore, the breakout movement must be supported by the large volume, which will be a more reliable and accurate signal for entering the market.

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

XAU/USD

The price broke out the previous level of resistance, but after the formation of the new one 1322.80, it corrected downwards. Nevertheless, given the recent confident growth and the fact that the price is trading near this mark, we can and should regard a scenario of its breakout, which will allow us to open long positions.

The surge of the price should be abrupt and 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 more than 150 points.

The sentiment: this technical indicator totally confirms our trading scenarios with EUR/USD, USD/JPY and XAU/USD, which is a great additional signal (trading against the “crowd”). As with other pairs, we can use the sentiment only after the sure exit of prices from local consolidations.

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