Daily Technical Forex Forecast 08.08.2019


EUR/USD

The Euro corrected downwards and is currently located inside the local consolidation between 2 strong volume levels. They are the level of support 1.1170 and the level of resistance 1.1240.

Thus, we can open new positions only after the confident exit of the price from this local range. 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 locked within this range, we’d better stay out of the market.

GBP/USD

The same situation with the Pound as the price continues trading within the local consolidation between the support 1.2090 and the resistance 1.2243. Given that the large volume is concentrated within this local range, we can consider new positions only after the confident and sharp exit of the price from it.

Furthermore, the breakout movement must be supported by the large volume, which will be a more reliable 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 corrected upwards after the formation of the new level of support 105.56. Now, as you can see from the chart, the pair is located inside this local range between this mark and the previous level of resistance 106.93. Thus, we can reckon new trading scenarios only after the confident and keen exit of the price from it. Moreover, the breakout movement must be supported by the large volume, which will be a more secure and precise signal for entering the market.

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

USD/CAD

The Canadian dollar corrected downwards and now is located within the local consolidation between the support 1.3223 and the resistance 1.3333. Hence, we can open new positions only after the sharp and confident exit of the price from the local range. Moreover, the breakout movement must be supported by the large volume, which will be a more accurate signal for entering the market.

Until that, we’d better stay out of the market.

AUD/USD

The Australian dollar corrected upwards, but the movement was on the small volume, so that we can’t consider it as a reversal signal. Moreover, given the presence of the strong downtrend, we still should prefer a scenario of opening short positions. We can enter the market after a stoppage of the rise and a resumption of the sharp drop supported by the large volume. A stop loss should be placed above the beginning of this move. A potential of the deal is more than 80 points.

XAU/USD

The price continued growing, moreover, the movement was supported by the large volume, which is a great bullish signal. Also, we need to allocate the new support 1493.20. Given all these factors, we should reckon exceptionally 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 level of support. A potential of the deal is more than 200 points.

The sentiment: this technical indicator totally affirms our trading scenarios with AUD/USD and XAU/USD, which is a great additional signal. As with other currency pairs, we can open new positions only after the sharp and confident exit of prices from local consolidations.