Daily Technical Forex Forecast 08.05.2019


EUR/USD

The Euro continues trading inside the local consolidation between the level of support 1.1121 and the level of resistance 1.1266-1.1276. If we take a look at our volume chart, here we can see that the large volume is concentrated within this range. Hence, we may assume that big players are gaining their positions in this consolidation.

That’s why the best solution with the Euro is just to wait for the exit of the price from the range and only after that we can open new positions. The breakout movement must be keen 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.

GBP/USD

The Pound corrected downwards yesterday and now is located inside the local consolidation between the lev support 1.3006 and the resistance 1.3137 – 1.3167. Therefore, we may open new positions only after the breakout of one of these levels and the sharp exit of the price from the range.

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

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

USD/JPY

The Yen continued falling down and broke down the previous level of support, which is a good bearish signal. The movement was supported by the increased volume, which also enhances its importance, so now we should prefer a scenario of opening short positions. We can enter the market after a small and smooth upward correction of the price, in order to get a more profitable entry point. A stop loss should be placed above the beginning of the breakdown movement. A potential of the deal is around 80-90 pips.

USD/CAD

The Canadian dollar is still located within the local consolidation between 2 strong volume levels. They are the support 1.3382 and the resistance 1.3514.  Hence, our previous scenario remains actual: we can open new positions only after the sharp and confident exit of the price from the range. Moreover, the breakout movement must be supported by the large volume, which will be a more secure and accurate signal for entering the market.

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

AUD/USD

Nothing has changed with the Australian dollar as the pair is still locked inside the local consolidation 0.6966 – 0.7060. Hence, 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.

XAU/USD

Nothing has changed here as the price is still trading inside the local consolidation between the support 1267.30 and the resistance 1295.10. Given that the large volume is concentrated within this consolidation, we can consider new trading scenarios only after the sharp exit of the price from it.

Furthermore, the breakout movement must be sharp, confident and supported by the large volume, which will be a more accurate and reliable signal for entering the market.

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

The sentiment: this technical indicator confirms our scenario with the Yen, which is the only good deal today. As with other instruments, we can consider new trading scenarios only after the exit of prices from local consolidations.