Daily Technical Forex Forecast 01.05.2019


EUR/USD

The Euro demonstrated a confident and sharp growth supported by the increased volume, but is still located inside the local range between the support 1.1121 and the resistance 1.1266 – 1.1276.

Therefore, our previous scenario remains relevant: we can open new positions only after the sharp exit of the price from the consolidation. Moreover, the breakout movement must be supported by the large volume, only after that we can enter the market.

While the price is trading within this consolidation, we’d better omit this instrument from our trading plan.

GBP/USD

The Pound demonstrated a sharp growth, supported by the large volume and broke out the previous level of resistance, which is a good bullish signal. Besides it, we need to point out the new level of support 1.3025, which was created during this move and which contains the large volume. So that, we should give a slight advantage to long positions.

We can enter the market only after the continuation of the sharp growth supported by the increased or large volume, which will be a more reliable signal for entering the market. A stop loss should be placed below the level of support. A potential of the deal is around 110 points.

USD/JPY

The Yen is testing the level of support/lower boundary of the local range 111.39. Therefore, our previous scenario remains actual: we may consider a breakdown of this mark, which will allow us to open short positions. The drop 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 breakdown volume bar. A potential of the deal is around 100 points.

So with the Yen, sales after the sure breakdown of the level of support.

USD/CAD

The Canadian dollar showd a sharp drop supported by the large volume. Moreover, we need to allocated a new level of resistance 1.3459, which contains the large volume. Hence, we may reckon a scenario of opening short positions, but we can enter the market after a smooth upward correction of the price, in order to get a more profitable entry point. A stop loss should be placed above the resistance. A potential of the deal is 120-130 points.

AUD/USD

The Australian dollar is locked within the local consolidation between the support 0.7033 and the resistance 0.7068. Therefore, we can consider new trading scenarios only after a breakout of one of these levels and the sharp exit of the price from the consolidation. Furthermore, the movement must be keen, confident and 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.

XAU/USD

Nothing has changed with gold as the price is still located in the middle of the local consolidation between the level of support 1267.30 and the level of resistance 1295.10. We should point out that the large volume is concentrated inside it, so that we may assume that the smart money are gaining there positions in this area.

Thus, we can open 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 must be sharp and supported by the large volume, which will be a more accurate and reliable signal for entering the market.

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

The sentiment: this technical indicator totally affirms our scenarios with GBP/USD and USD/CAD, which is a good additional signal. The opposite situation with the Yen, that’s why we should be more careful. As with other instruments, we should wait for the exit of prices from local range and only after that we can open new positions.