Daily Technical Forex Forecast 29.05.2019


EUR/USD

The Euro showed an abrupt fall yesterday, but the price is still locked inside the local consolidation between 2 strong volume levels. The first one is the support 1.1112 – 1.1120, the second one is the resistance 1.1266 – 1.1276.

Therefore, we can open new positions only after the confident breakout of one of these levels and sharp exit of the price from the range. Moreover, the movement must be supported by the large volume, which will be a more precise signal for entering the market.

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

GBP/USD

Nothing has changed with the Pound as the price is trading near the level of support/local minimum 1.2607 – 1.2617. Given the presence of the strong downtrend, we still should prefer a scenario of opening short positions.

We can enter the market only after the confident and sharp breakdown of this mark. The movement must be supported by the large volume, which will insure us against a fake breakdown. A stop loss should be placed above the breakdown volume bar. A potential of the deal is more than 120 pips.

USD/JPY

The Yen continued falling and now is testing the level of support 109.10. Therefore, we may reckon a scenario of its breakdown, which will be a great bearish signal. The drop of the price must be abrupt, confident 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

The Canadian dollar demonstrated an abrupt rise and now is trading near the level of resistance/upper boundary of the local consolidation 1.3514. Hence, we may consider a scenario of its breakout, which will be a great bullish signal. The surge must be keen and supported by the large volume, which will insure us against a fake breakout. A stop loss should be located below the breakout volume bar. A potential of the deal is around 110-120 pips.

AUD/USD

The Australian dollar tested the resistance level 0.6932, but could not break it out. On the other hand, the price is still trading near it, so that our previous scenario is still actual: we may reckon a breakout of this mark, which will consent us to open long positions. The rise of the pair must be sharp, confident and supported by the large volume. A stop loss should be placed below the breakout volume bar. A potential of the deal is around 70 pips.

XAU/USD

Nothing has changed with gold. The price continues trading within the local consolidation between 2 strong volume levels. The first one is the support 1267.30, the second one is the resistance 1301.00.

Therefore, the best decision with this instrument is just to wait for a breakout of one of these levels and the sharp exit of the price form the range, only after that we can open new positions. Moreover, the breakout movement must be supported by the large volume, which will be a more reliable and accurate signal for entering the market.

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

The sentiment: this technical indicator totally affirms all our trading sceanarios (trading against the “crowd”), except the one with AUD/USD. Hence, we should be careful trading this pair. As with EUR/USD and XAU/USD, we can open new positions only after the sharp exit of prices from local ranges.