Daily Technical Forex Forecast 16.08.2019


EUR/USD

The Euro demonstrated a sharp drop supported by the large volume. Besides it, we need to point out the new volume level of resistance 1.1154. Considering all these factors, we should prefer a scenario of opening short positions.

We can enter the market after a smooth upward correction, in order to get a better entry point. A stop loss should be placed above the level of resistance. A potential of the deal is around 100 points.

GBP/USD

The pair demonstrated an abrupt growth supported by the large volume yesterday and broke out the previous resistance level. Nevertheless, the price is locked within the local range, where the large volume is concentrated. The boundaries of the consolidation are the support 1.2052 and the resistance 1.2182.

Thus, we can open new positions only after the confident and sharp exit of the price from this consolidation. Moreover, 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 range, we’d better stay out of the market.

USD/JPY

Nothing has changed here as the price is still located inside the local range between the support 105.12 and the resistance 107.60. Thus, we can consider new trading scenarios only after the confident breakout of one of these levels and the sharp exit of the price from the range. Furthermore, the 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/CAD

The Canadian dollar is testing the level of resistance/upper limit of the local consolidation 1.3333 at the moment. Given that the recent growth was supported by the large volume, we can regard a scenario of its breakout, which will be a good bullish signal. 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 100 points.

AUD/USD

The Australian dollar continues trading within the local consolidation between the support 0.6747 and the resistance 0.6817. Hence, we can open new positions only after the sharp and confident exit of the price from the range. Furthermore, the breakout movement must be supported by the large volume, which will be a more accurate and reliable signal for entering the market.

While the price is locked within the range, we’d better stay out of the market.

XAU/USD

Gold goes on trading inside the local consolidation between 2 strong volume levels. They are support 1493.20 and the resistance 1526.90.

Therefore, we can consider new trading scenarios only after the sharp and confident exit of the price from the range. 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 price is trading inside the range, we’d better stay out of the market.

The sentiment: this technical indicator totally confirms our trading scenarios with EUR/USD and USD/CAD, which is a good additional signal. As with other currency pairs, we should wait for the sharp exit of prices from local consolidations.

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