Daily Technical Forex Forecast 04.04.2019


EUR/USD

The Euro corrected upward, but the move was smooth and on the small volume, therefore we can’t consider it as a reversal signal. Moreover, given the strong local downtrend, we still should prefer a scenario of opening short positions with this currency pair.

We can enter the market after a continuation of the fall, but the movement must be support by the large volume, which will insure us against a fake breakdown. A stop loss should be placed above the beginning of this fall. A potential of the deal is more than 100 points.

GBP/USD

Nothing has changed with the Pound as the price continues trading in the middle of the local range between the level of support 1.2985 – 1.2998 and the level of resistance 1.3335. The large volume accumulation is concentrated within this range.

Hence, the best solution with this instrument is just to wait for the breakout of one of these levels and a confident exit of the price from the range and only after that we can consider new positions. Moreover, the breakout movement must be supported by the large volume, which will insure us against a fake breakout.

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

USD/JPY

The Yen continued growing and now is trading near the level of resistance/upper boundary of the local range 112.00. Thus, we can and should regard a scenario of its breakout, which will be a great signal for opening long positions. A stop loss should be placed below the breakout volume bar and complete a transfer. A potential of the deal is more than 100 points.

USD/CAD

The Canadian dollar is still locked within the range between the support level 1.3248 and the level of resistance 1.3463. Thus, we can consider new positions only after the sharp exit of the price from the range. The breakout movement must be keen and supported by the large volume, which will be a more secure and precise signal for entering the market.

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

AUD/USD

The Australian dollar is also locked inside this local consolidation between 2 strong volume levels. The first one is the support 0.7008, the second one is the resistance 0.7165. Hence, 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 movement must be supported by the large volume, which will be a more accurate and reliable signal for entering the market.

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

XAU/USD

Nothing has changed with gold. Yes, the price corrected upwards, but the movement was smooth and on the small volume, therefore, we can’t point out any new volume level or zone. Moreover, given the presence of the strong volume level of resistance 1299.60. We should prefer a scenario of opening short positions.

We can enter the market after the continuation of the drop, but the movement must be supported by the large volume, which will be a more accurate signal for entering the market. A stop loss should be placed above the level of resistance. A potential of the deal is more than 150 pips.

The sentiment: this technical indicator totaly affirms our trading scenarios with EUR/USD, GBP/USD, XAU/USD, which is a great additional signal (trading against the “crowd”). As with other instruments, we’d better stay out of the marke until the exit of prices from local consolidations.

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