Daily Technical Forex Forecast 22.05.2019


EUR/USD

The Euro showed an abrupt growth, but it was totally swallowed by the further drop and the price is trading near the level of support 1.1143. Thus, we may assume that buyers don’t have enough power to push the price upwards and sellers are still dominating the market.

Thus, we can reckon a breakdown of this mark, which will allow us to open short positions. The drop of the pair must be keen 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.

GBP/USD

The same situation with the Pound. The price demonstrated an abrupt growth, but after the formation of the large volume level, the price corrected downwards and now is trading near the local minimum. We need to point out the new resistance 1.2796, which contains the huge volume.

Given all these factors, we should give preference to short positions. We can enter the market after a smooth upwards correction, in order to get an acceptable entry point. A stop loss should be placed a little bit above the level of resistance. A potential of the deal is more than 120 pips.

USD/JPY

The Yen continued growing and broke out the previous level of resistance, which is a great bullish signal. The further move was stopped by the formation of the new volume level 110.62. Thus, we can open purchases only after the confident and sharp breakout of this mark. The movement must be supported by the large volume. A stop loss should be located below the breakout volume bar. A potential of the deal is more than 100 points.

USD/CAD

The Canadian dollar continued falling and now is trading near the level of support/lower limit of the local range 1.3382. Hence, we can consider a scenario of its breakdown, which will be a great bearish signal. The drop must be keen and supported by the large volume, which will be a more reliable signal for entering the market. A stop loss should be placed above the breakdown volume bar. A potential of the deal is around 90-100 points.

AUD/USD

The Australian dollar is trading near the support level/local minimum 0.6867. Given the presence of the recent sharp fall on the large volume, we can regard a scenario of its breakdown, which will be a great bearish signal. The sink of the pair must be abrupt and supported by the large volume, which will be a more secure 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 points.

XAU/USD

The price went on falling and now is trading near the level of support/lower boundary of the local consolidation 1267.30. Therefore, our previous scenario remains relevant: we can consider a breakdown of this mark, which will be a great bearish signal.

The drop of the pair must be supported by the large volume, which will be a more secure signal for entering the market. A stop loss should be placed above the breakdown volume bar. A potential of the deal is more than 150 pips.

The sentiment: this technical indicator totally confirms all our trading scenarios today (trading against the “crowd”), which is a great additional signal for us.

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