Daily Technical Forex Forecast 06.06.2019


EUR/USD

The Euro demonstrated an abrupt drop supported by the large volume. Besides it, we need to point out a new level of resistance 1.1289 – 1.1302. As you can see from the chart, the price is now located inside the local consolidation between this mark and the previous level of support 1.1112 – 1.1120.

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

GBP/USD

Nothing has changed here as the price is still located inside the local range 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 was concentrated inside this range. Therefore, we may assume that the smart money is gaining positions inside this area.

That’s why we can consider new trading scenarios only after the exit of the price from it. Furthermore, the breakout movement must be supported by the large volume, which will insure us against a false breakout.

While the price is located inside this range, we’d better omit this instrument from our trading plan.

USD/JPY

The Yen corrected upwards after the formation of the new level of support 107.83. Nevertheless, the price has already resumed falling and now is trading near this mark. That’s why we may reckon a scenario of its breakdown, which will allow us to open short positions. The sink must be keen, rapid 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 tested the level of support 1.3382, but could not break it down. Nevertheless, the price is still trading near this mark, we may consider a breakdown of this mark, which will allow us to open short positions. The drop of the pair must be keen, rapid 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 around 90 points.

AUD/USD

The Australian dollar corrected down after the creation of the new level of resistance 0.7002. However, the price is still located nigh this mark + given the recent strong and sharp growth, we may regard a scenario of its breakout. It will be a great bullish signal. The surge of the pair must be abrupt 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.

XAU/USD

The price also corrected downwards after the formation of the new level of resistance 1343.60. This level contains the large volume. Nevertheless, given the recent sharp growth supported by the large volume and the fact that the price is still located near this mark, we may consider a scenario of its breakout, which will allow us to open long positions.

The surge of the price must be abrupt and supported by the large volume, which will be a more accurate and reliable signal for entering the market. A stop loss should be placed below the breakout volume bar. A potential of the deal is more than 150 pips.

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

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