Daily Technical Forex Forecast 04.07.2019


EUR/USD

The Euro is trading in the middle of the local consolidation between 2 strong volume levels. The first one is the support 1.1185, the second one is the resistance 1.1395. Thus, our previous scenario remains relevant: we can open new positions only after the confident exit of the price from the range. Furthermore, the movement must be supported by the large volume, which will be a more precise signal for entering the market.

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

GBP/USD

The same situation with the Pound as the price is still locked within the local consolidation between 2 strong volume levels. They are the support 1.2520 and the resistance 1.2796. Thus, the best decision with this instrument is just to wait for the exit of the price from the range and only in such case we can open new positions. Moreover, the breakout movement must be keen and supported by the large volume, which will be a more accurate signal for entering the market.

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

USD/JPY

The Yen is located near the level of support/lower boundary of the local range 107.60. Given the recent sharp drop, we still may consider a scenario of its breakdown, which will allow us to open short positions. The fall 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 this local minimum.

USD/CAD

The Canadian dollar continued falling and broke down the previous level of support, which is a good bearish signal. On the other hand, the move was on the average volume, so that we can’t point out any new volume levels or zones. Nevertheless, we still should give a slight advantage to short positions, but we can open sales only after the continuation of the drop on the large volume. It will be a more reliable signal for entering the market. A stop loss should be placed above the beginning of this sink. A potential of the deal is more than 100 points.

AUD/USD

The Australian dollar showed a sharp and steady growth and broke out the previous resistance level, which is an excellent bullish signal. Moreover, this movement was on the large volume, which only enhances its value, since it means that it was the major players that pushed the price upwards. Given all these factors, we should give preference to long positions. Purchases can be opened after a small and smooth price correction down to get a better entry point to the market. A stop loss should be placed just below the start of the breakout movement. A potential of the deal is more than 80 points.

XAU/USD

The price corrected downwards yesterday and now is located inside the local range between the support 1383.30 and the resistance 1435.80. Hence, we may reckon new trading scenarios only after the exit of the price from this consolidation. Moreover, the breakout movement must be abrupt and supported by the large volume, which will be a more accurate signal for entering the market.

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

The sentiment: this technical indicator totally affirms our trading scenarios with USD/CAD, USD/JPY and AUD/USD (trading against the “crowd”), which is a great additional signal for us. As with other instruments, we can open new positions only after the keen exit of prices from local consolidations.

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