Daily Technical Forex Forecast 07.05.2019


EUR/USD

Nothing has changed with the Euro as price is still located inside the local consolidation between 2 strong volume levels. They are the level of support 1.1121 and the level of resistance 1.1266 – 1.1276. We should also point out that the large volume is concentrated within this range.

Thus, our previous scenario remains relevant: we can open new positions only after the sharp exit of the price from the range. Furthermore, the movement must be supported by the large volume, which will insure us against a fake breakout.

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

GBP/USD

The Pound corrected downwards after the formation of the resistance 1.3137 – 1.3167, but the price has already resumed growing and now is trading nigh this mark. Given the recent sharp growth supported by the large volume, we may regard a scenario of its breakout, which will allow us to open long positions.

The growth of the price must be keen, confident and supported by the large volume, which will be a more accurate and secure signal for entering the market. A stop loss should be placed below the breakout volume bar. A potential of the deal is more than 150 points.

USD/JPY

The Yen is still trading nigh the level of support/local minimum 110.40. Therefore, our previous scenario remains actual: we may consider a breakdown of this mark, which will be a great bearish signal. The drop of the price must be abrupt and supported by the large volume, which will insure us against a fake breakout. A stop loss should be placed above the breakdown volume bar. A potential of the deal is around 100 points.

USD/CAD

Nothing has changed with the Canadian dollar as the pair is still locked within the local range 1.3382 – 1.3514. Therefore, our scenario remains relevant: we can open new positions only after the exit of the price from it. Furthermore, the breakout movement must be supported by the large volume, which will insure us against a false breakout and will be a more accurate signal for entering the market.

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

AUD/USD

The price showed a sharp grwoth supported by the large volume, which is a good bullish signal. However, the price is still trading within the local consolidation between 2 strong volume levels. The first one is the support 0.6966 and the resistance 0.7060. Hence, we may open new positions only after the sharp exit of the price from the range. The movement must be supported by the large volume, which will be a more precise signal for entering the market.

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

XAU/USD

The price is still trading inside the local range, where the large volume is concentrated. Therefore, we may assume that big players are gaining their positions inside this area before a start of the next local trend. The boundaries of the consolidation are the support 1267.30 and the resistance 1295.10.

That’s why, we may open new positions only after the exit of the price from it. Moreover, the movement must be sharp and supported by the large volume, which will be a more accurate signal for entering the market.

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

The sentiment: this technical indicator totally confirms our scenarios with the Pound and Yen (trading against the “crowd”), which is a good additional signal. As with other instruments, we may use this indicator only after the exit of prices from local consolidations.