Daily Technical Forex Forecast 03.04.2019


EUR/USD

The Euro corrected upwards yesterday, but the growth was smooth and on the small volume, therefore, we can’t consider it as a reversal signal. Moreover, given the presence of the strong local downtrend, we should prefer a scenario for opening short positions.

However, we can enter the market only after a stoppage of this correction and a resumption of an abrupt drop supported by the large volume, which will be a more reliable signal for entering the market. A stop loss should be placed above this move. A potential of the deal is more than 100 points.

GBP/USD

The Pound demonstrated an abrupt growth and now is located inside this local range between 2 strong volume levels. The first one is the support 1.2985 – 1.2998, the second one is the resistance 1.3335. The large volume is concentrated within this consolidation.

Hence, the best solution with this instrument is just to wait for the breakout of one of these levels, sharp exit of the price from the range and only after that we can open new positions. Moreover, the movement must be supported by the large volume, which will be a more reliable and accurate 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 continued rising and now is trading near the level of resistance/upper limit of the local consolidation 112.00. Therefore, we can regard a scenario of its breakout, which will allow us to open long positions with this pair. The surge must be keen and supported by the alrge volume, which will be a more precise signal for entering the market. A stop loss should be placed below the breakout volume bar. A potential of the deal is more than 100 points.

If the price goes on trading inside the range, we’d better stay out of the market.

USD/CAD

The Canadian dollar is also locked within the local consolidation between 2 strong volume levels. They are the level of support 1.3248 and the level of resistance 1.3463. Hence, we can consider new positions only after the breakout of one of these levels and the sharp exit of the price from the range. Furthermore, the breakout movement should be supported by the large volume, which will insure us against a fake breakout.

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

AUD/USD

The Australian dollar resumed growing, but is still located inside the local range between the level of support 0.7008 and the level of resistance 0.7165. Thus, the best solution with this pair is just to wait for the exit of the price from the range and only after that we can open new positions. The breakout movement must be sharp and supported by the large volume, which will be a more reliable and accurate signal for entering the market.

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

XAU/USD

Gold also demonstrated a smooth upward correction. Moreover, the movement was on the small volume, so that we can’t consider that it is a strong bullish signal. Besides it, our previous level of resistance 1299.50 is still actual. Therefore, given all these factors, we still should prefer a scenario of opening short positions.

We can enter the market only after a stoppage of this correction and a resumption of an abrupt drop, supported by the large volume, which will be a more reliable signal for entering the market. A stop loss should be placed above the resistance level. A potential of the deal is more than 150 pips.

The sentiment: this technical indicator totally confirms our scenarios with the Euro, Yen and gold, which is a great additional signal for us (trading against the “crowd”). As with other currency pairs, we can consider new positions only after the sharp exit of prices from local consolidations.

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