Daily Technical Forex Forecast 05.06.2019


EUR/USD

The Euro adjusted down yesterday, but after the appearance of the large volume and the formation of a new support level 1.1231, the price resumed its growth. Given this factor, as well as the recent sharp growth on the increased volume, we can assume that buyers now dominate the market. Thus, we should consider precisely long positions as a priority option.

Purchases can be opened after a small downward correction of the price, in order to get a more profitable entry point. A stop loss should be placed slightly below the new level of support. The potential of the deal is more than 100 points.

GBP/USD

The Pound continues trading inside the local consolidation between the support 1.2568 and the resistance 1.2796. If we take a look at our volume chart, here we can see that the large volume is concentrated inside this range.

Thus, we can open new positions only after the exit of the price from it. Moreover, the breakout movement must be abrupt and supported by the large volume, which will be a more reliable signal for entering the market.

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

USD/JPY

The Yen is still trading below the level of resistance 108.44. Hence, our previous scenario remains relevant: we should prefer a scenario of opening short positions. We can enter the market after the resumption of the sharp drop on the large volume, which will be a more secure signal for entering the market. A stop loss should be placed above the resistance level. A potential of the deal is more than 100 points.

USD/CAD

The Canadian dollar continued falling and now is testing the level of support 1.3382. Therefore, we can consider a scenario of its breakdown, which will allow us to open sales. The sink of the price must be keen and supported by the large volume, which will be a more accurate signal for entering the market. A stop loss should be placed above the breakdown volume bar. A potential of the deal is around 90 points.

AUD/USD

The Australian dollar carried on growing on the increased volume. Besides it, we should allocated the new level of support 0.6956. Considering all these factors, we should give preference to long positions. We can enter the market after a slight downward correction of the price, in order to get a better entry point. A stop loss should be placed below the level of support. A potential of the deal is around 70-80 points.

XAU/USD

Gold went on rising on the increased volume. Moreover, we need to point out the new volume level of support 1320.90. Given all these factors, we should prefer exceptionally long positions.

We can enter the market after a small downward correction of the price, in order to get a better entry point. A stop loss should be placed below the support level. A potential of the deal is more than 150 points.

The sentiment: this technical indicator totally affirms all our trading scenarios today, which is a great additional signal for us. As with GBP/USD, we can consider new positions only after the exit of the price from the local consolidation.

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