Daily Technical Forex Forecast 02.07.2019


EUR/USD

The Euro demonstrated an abrupt drop, but the movement was on the small volume, so that we can’t point out any new volume levels or zones. Moreover, the price is located inside the local range between 2 strong volume levels. They are the level of support 1.1185 and the level of resistance 1.1395.

Thus, the best solution with this instrument is just to wait for the breakout of one of these levels and the confident exit of the price from the range and only in such case we can open new positions. Moreover, the 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.

GBP/USD

The same situation here. The price is still locked inside the local range between the level of support 1.2520 and the level of resistance 1.2796. Given that the large volume is concentrated inside this range, we can open new positions only after the sharp exit of the price from it.

Furthermore, the breakout movement must be keen and supported by the large volume, which will be a more reliable signal for entering the market.

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

USD/JPY

The Yen demonstrated a sharp growth and now is testing the level of resistance 108.49. Thus, we may reckon a scenario of its breakout, which will consent us to open long positions. The surge must be abrupt, confident and supported by the large volume. A stop loss should be placed below the breakout volume bar. A potential of the deal is more than 110 pips.

USD/CAD

The Canadian dollar corrected upwards, but the rise was smooth and on the small volume, so that we can’t treat is as a reversal signal. Moreover, given the strong local downtrend, we still should prefer a scenario of opening short positions. However, we can enter the market only after the restart of the drop and the sure breakdown of the support level 1.3075. The movement must be supported by the large volume, which will be a more secure signal. A stop loss should be placed above the breakdown volume bar. A potential of the deal is more than 100 points.

AUD/USD

After the test of the resistance 0.7017, the price corrected downwards. However, the pair has already resumed rising and is trading near this mark. Hence, we may reckon a scenario of its breakout, which will allow us to open long positions. The surge 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 below the breakout volume bar. A potential of the deal is more than 80 pips.

If the price goes on falling, we’d better stay out of the market.

XAU/USD

Gold showed a confident drop and is currently testing the level of support/lower boundary of the local consolidation 1383.30. Therefore, we may regard a scenario of its breakout, which will be a great bearish signal.

The drop of the price must be confident, rapid 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 more than 150 points.

The sentiment: this technical indicator totally affirms all our trading scenarios, except the one with gold. So that we should be more careful trading this instrument. As with other instruments, like EUR/USD and GBP/USD, we can open new positions only after the sharp exit of prices from local ranges.