Daily Technical Forex Forecast 14.05.2019


EUR/USD

The Euro tested the resistance level 1.1255, but could not break it out. On the other hand, the price did not show any sharp reaction and is still trading near this mark. Hence, we can consider a scenario of its breakout, which will allow us to open long positions.

The growth of the price must be keen and supported by the large volume, which will be a more reliable and 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.

GBP/USD

The Pound showed a significant and sharp drop and broke down the previous support level, which is an excellent bearish signal. The downward movement was supported by the increased volume, which only enhances its value, since it means that the major players pushed the price down. At the moment, the price is trading near the support level 1.2871.

Thus, we can open short positions only after a confident and rapid breakdown of this mark. The movement should be supported by the large volume, which will be a more accurate and strong signal to enter the market. A stop loss should be placed slightly above the breakout volume bar. The potential of the deal is more than 120 points.

USD/JPY

The Yen broke down the previous support level, but could not endure falling and corrected upwards. Besides it, we need to allocate a new volume level of support 109.08. Nevertheless, the price is still trading near this mark, so given the local downtrend, we can consider a breakdown of it, which will allow us to open short positions. The drop of the pair should be sharp and supported by the large volume. A stop loss should be placed above the breakdown volume bar. A potential of the deal is more than 100 points.

USD/CAD

Nothing has changed here as the price is still located within the local consolidation between 2 strong volume levels. The first one is the level of support 1.3382, the second one is the level of resistance 1.3514. Therefore, we can open new positions only after the breakout of one of these levels and the exit of the price from the range. The movement must be sharp, confident and supported by the large volume, which will be a more secure signal for entering the market.

While the price is trading inside the range, we should stay out of the market.

AUD/USD

The Australian dollar showed a sharp drop and broke down the previous support level. However, the further sink of the price was stopped by the formation of the new level of support 0.6941. Now the price is testing this mark, so that we may reckon its scenario, which will be a great signal for entering the market. The fall must be keen and supported by the large volume, which will be a more precise signal for entering the market. A stop loss should be placed above the breakdown volume bar. A potential of the deal is more than 80 pips.

XAU/USD

Gold demonstrated an abrupt growth supported by the huge volume, which is a strong bullish signal as it means that the smart money pushed the price up. Besides it, we need to allocate the new level of support 1295.50, which contains the large volume.

Given all these factors, we should prefer a scenario of opening long positions. We can enter the market after a resumption of the sharp rise on the large volume, which will be a more reliable signal. A stop loss should be placed below the new support level. A potential of the deal is more than 150 points.

The sentiment: this technical indicator totally affirms all our trading scenarios (trading against the “crowd”), which is a good additional signal. As with the Canadian dollar, we can open new positions only after the sharp exit of the price from the local consolidations.