Daily Technical Forex Forecast 18.04.2019


EUR/USD

The Euro tested the level of resistance, but failed to break it out and then corrected downwards. The move was sharp and supported by the large volume. However, the price is located inside the local consolidation between the resistance 1.1320 and the support 1.1235 – 1.1250.

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

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

GBP/USD

The Pound demonstrated a smooth drop and now is trading near the level of support/lower boundary of the local consolidation 1.2985 – 1.2998. Thus, we may regard a scenario of its breakdown, which will be a good bearish signal.

The sink of the price must be confident, keen and supported by the large volume, in order to insure us against a fake breakdown. A stop loss should be located above the breakdown volume bar. A potential of the deal is more than 100 points.

USD/JPY

Nothing has changed with the Yen as the price is testing the level of resistance/upper limit of the local range 112.00. Thus, our previous scenario remains relevant: we can reckon a scenario of its breakout, which will be a good bullish signal. The surge of the price must be supported by the large volume, which will be a more accurate 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.

USD/CAD

The Canadian dollar is still located in the middle of the local consolidation between 2 strong volume levels. They are the support level 1.3248 and the resistance level 1.3463. Hence, we can consider new positions only after the sharp and confident breakout of one of these levels and the exit of the price from the range. The breakout movement must be supported by the large volume, which will be a more reliable signal for entering the market.

While the price is locked within the range, we’d better stay out of the market.

AUD/USD

The Australian dollar is still located near the level of resistance 0.7202. Therefore, our previous scenario remains actual: we may consider a scenario of its breakout, which will allow us to open long positions. The surge must be keen and supported by the large volume, which will be a more accurate signal for entering the market. A stop loss should be placed below the breakout volume bar. A potential of the deal is more than 80 pips.

XAU/USD

As predicted, the price resumed falling and now is testing the new level of support 1273.90. Given the sharp fall, we can consider a scenario of its breakdown, which will be a great signal for opening short positions.

The drop must be abrupt and supported by the large volume, which will be a more precise and secure 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 pips.

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