Daily Technical Forex Forecast 03.05.2019


EUR/USD

Nothing has changed here as the price is located inside the local consolidation between the level of support 1.1121 and the level of resistance 1.1266 – 1.1276. Therefore, our previous scenario remains relevant: we can open new positions only after the confident and sharp exit of the price from the consolidation.

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

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

GBP/USD

The price tested the level of support 1.3025, which contains the large volume, but failed to break it out and now is trading near this level. Thus, we may consider 2 possible trading scenarios.

The first one is the resumption of an abrupt growth supported by the large volume, which will allow us to open long positions. A stop loss should be placed below the test of the level of support. A potential of the deal is more than 120 pips.

The second scenario is a sharp and confident breakdown of the support, also supported by the large volume, which will allow us to open short positions. A stop loss should be placed above the breakdown volume bar. A potential of the deal is 1.2932.

USD/JPY

The Yen is still locked inside the local consolidation between the level of support 111.06 and the level of resistance 112.24. Thus, our previous scenario remains relevant: we may consider new positions only after the sharp exit of the price from the range. Furthermore, the breakout movement must be keen, confident and supported by the large volume, which will be a more accurate signal for entering the market.

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

USD/CAD

The Canadian dollar is still locked inside the local range between the level of support 1.3382 and the level of resistance 1.3459. Thus, the best decision with this pair is just to wait for the exit of the price from the range and only after that we may consider new positions. Moreover, the breakout movement must be sharp and supported by the large volume, which will be a more secure and precise signal for entering the market.

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

AUD/USD

The Australian dollar went on falling and now is testing the local minimum 0.6992. Thus, we may open short positions only after the sharp and keen breakdown of this mark. Furthermore, 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 breakdwon volume bar. A potential of the deal is more than 80 pips.

XAU/USD

The price continued falling and tested the level of support, but could not break it down. On the other hand, the price did not show any sharp reaction upwards and is still located near this level.

Hence, we may reckon a scenario of its breakdown, which will be a good signal for opening short positions. The drop must be keen and supported by the large volume. A stop loss should be placed above the breakdown volume. A potential of the deal is more than 150 pips.

The sentiment: this technical indicator totally affirms our scenarios with AUD/USD and XAU/USD (trading against the “crowd”), which is a good additional signal. As with other currency pairs, we can open new positions only after the sharp exit of prices from local ranges.