Daily Technical Forex Forecast 07.08.2019


EUR/USD

The Euro resumed growing after the formation of the new level of support 1.1170. This level contains the large volume; we can see it here. Hence, we can use it as a good place for a stop loss. We can enter the market and open long positions after a slight downward correction, in order to get a better entry point. A stop loss should be placed below this level of support. A potential of the deal is more than 100 points.

GBP/USD

Nothing has changed here as the price is still trading inside the local range between the support 1.2090 and the resistance 1.2243. Given that the large volume is concentrated within this consolidation, we can open new positions only after the sharp exit of the price from it. Moreover, the breakout movement must be keen and supported by the large volume, which will be a more secure signal for entering the market.

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

USD/JPY

We need to point out the new level of resistance 106.93, which contains the large volume. Now the price is trading below it and given the recent sharp fall, we should give preference to short positions. We can enter the market after a slight upward correction, in order to get an acceptable entry point. A stop loss should be placed above the new level of resistance. A potential of the deal is more than 100 points.

USD/CAD

The Canadian dollar demonstrated a sharp rise and broke out the previous the level of resistance, which is a good bullish signal. Besides it, we need to allocated the new support level 1.3223. Considering all these factors, we should give preference to long positions. We can enter the market after a smooth downward correction of the price, in order to get a better entry point. A stop loss should be placed below the new support. A potential of the deal is more than 100 points.

AUD/USD

The Australian dollar showed a significant and sharp drop and broke down the previous support level, which is an excellent bearish signal. Moreover, the movement was supported by the large volume, which only strengthens its significance. Given all these factors, we should open exceptionally short positions with this instrument. We enter the market after a small and smooth correction of the price up, in order to get a more profitable entry point. A stop loss should be placed just above the beginning of the breakdown movement. A potential of the deal is more than 80 points.

XAU/USD

The price continued growing and broke out the previous level of resistance, which is a great bullish signal. Besides it, we need to allocate the new support 1460.70. Given all these factors, we should prefer a scenario of opening long positions. We can enter the market after a smooth downward correction, in order to get a better entry point. A stop loss should be placed below the support. A potential of the deal is more than 200 points.

The sentiment: this technical indicator totally affirms all our trading scenarios (trading against the “crowd”), which is a great additional signal. As with GBP/USD, we can open new positions only after the sharp exit of the price from the local consolidation.

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