Daily Technical Forex Forecast 17.05.2019


EUR/USD

The Euro continued falling, but is still located within the local consolidation between 2 strong volume levels. They are the support level 1.1121 and the resistance level 1.1255. Besides it, the large volume is concentrated within the range, so we may admit that big players are gaining new positions in it.

Hence, we can open new positions only after the sharp and confident exit of the price from the local consolidation. Furthermore, the breakout movement must be supported by the large volume, which will be a more accurate 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 continued its downward movement. The price drop was sharp and confident, albeit on an average level. By the way, the volume is evenly distributed throughout the fall of the pair, so we cannot point out any new volume level or zone. Nevertheless, given the presence of a strong local downtrend, we should give preference to short positions.

Sales can be opened after the continuation of the price drop, but this movement should be rapid and on the large volume, which will insure us against a false movement. A stop loss should be placed above the beginning of this decline. The potential of the deal is more than 100 points.

USD/JPY

The Yen is trading inside the local consolidation between 2 strong volume levels. They are the support level 109.10 and the resistance level 110.25. Thus, we can open new positions only after the sure and abrupt exit of the price from the range. Moreover, the breakout movement must be supported by the large volume, which will insure us against a fake breakout.

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

USD/CAD

The Canadian dollar showed a sharp rise of the price and is currently trading near the level of resistance/upper limit of the local consolidation 1.3514. Thus, we can consider a scenario of its breakout, which will be a great bullish signal. The movement 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 below the breakout volume bar. A potential of the deal is more than 100 points.

AUD/USD

The Australian dollar went on falling yesterday. Besides it, we should allocate the level of resistance 0.6932, which contains the large volume. Given all these factors, we should prefer a scenario of opening short positions. Sales can be opened 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 level. A potential of the deal is more than 80 points.

XAU/USD

Gold demonstrated an abrupt drop on the large volume yesterday, which is a good bearish signal. On the other hand, the price is still trading within the local consolidation between 2 strong volume levels. They are the support 1267.30 and the resistance 1301.00.

Therefore, we can open new positions only after the breakout of one of these levels and the confident exit of the price from the range. The breakout movement must be supported by the large volume, which will insure us against a fake breakout.

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

The sentiment: this technical indicator fully affirms our trading scenarios with GBP/USD, USD/CAD, AUD/USD (as we trade against the “crowd”), that is a good additional signal. As with other instruments, we should wait for the exit of prices from local consolidations.

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