Daily Technical Forex Forecast 05.09.2019


EUR/USD

The price continued correcting upwards yesterday, but is still located inside the local consolidation between 2 strong volume levels. They are the support 1.0935 and the resistance 1.1087.

Hence, we can open new positions only after the sharp exit of the price from it. Moreover, the breakout 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.

GBP/USD

The Pound demonstrated an abrupt rise supported by the large volume and now is trading near the level of resistance 1.2306. Therefore, we may consider 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 accurate signal for entering the market. A stop loss should be placed below the breakout volume bar. A potential of the deal is more than 140 pips.

USD/JPY

Nothing has changed here. The price continues trading within the local range between the support 105.12 and the resistance 107.60. Hence, we can open new positions only after the confident exit of the price from this consolidation. Moreover, the breakout movement must be rapid and supported by the large volume, which will be a more secure signal for entering the market.

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

USD/CAD

The Canadian dollar showed an abrupt drop supported by the large volume and broke down the previous support level, which is a great bearish signal. Besides it, we should point out the new resistance level 1.3282. Hence, we should consider exceptionally 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 resistance. A potential of the deal is more than 100 points.

AUD/USD

The Australian dollar went on rising and now is testing the resistance level/upper limit of the local consolidation 0.6816. Hence, we may consider a breakout of this mark, which will be a good bullish signal. The surge must be abrupt 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 points.

XAU/USD

The price tested the level of support 1535.00 – 1538.20, but could not break it down and then sharply grew up. Now the price is correcting downwards, but the movement is on the small volume, therefore, we can’t regard it as a reversal signal. So that we still should give advantage to long positions.

We can enter the market after a stoppage of this correction and a resumption of an abrupt growth supported by the large volume. A stop loss should be placed below the level of support. A potential of the deal is more than 300 points.

The sentiment: this technical indicator totally confirms our trading scenarios with USD/CAD, XAU/USD, which is a good additional signal. The situation with GBP/USD is 50/50, so that we should be more careful. As with AUD/USD, the situation is opposite, so that we must be extremely wary.

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