Daily Technical Forex Forecast 05.05.2017

EUR/USD

EUR/USD finally broke through the resistance level and withdrew from the consolidation, where it was trading for almost 2 weeks. It should be noted that the breakdown was on relatively large volume and confident, after which the price was fixed above the previous range.

It is also worth noting that the previous resistance level 1.0934 – 1.0943 is now a support, as it contains large volume, which pushed the price further up.

In addition, the accumulation of volume that was in the consolidation serves as a support zone now.

Given all the facts, the most likely scenario for the price movement is a continuation of the growth. This opens up a good opportunity for opening long positions.

We can enter the market after a small and smooth correction to get a more favorable risk/profit ratio. A stop loss should be set under the support level with a small margin (best of all under the level of 1.0916). The target is 1.1050.

GBP/USD

The pound continues trading in the consolidation on small volume, so that it is impossible to highlight any level or zones now. Also we need to point out a presence of a large volume accumulation in this range. It means that big players are gaining positions to start a new local trend.

So until the price breaks out this consolidation, we should stay out of the market.

If you still want to trade the pound, I advise to take a closer look to long positions.

USD/JPY

There was a correction of the price for the yen on Thursday. This move was on rather big volume, so we should be carefully trading this instrument now.

Until the breakdown of the support 112.24 – 112.31, we should regard only long positions.

We can enter the market after a resumption of the strong growth. It can be a rebound from the support. A stop loss should be set below the support. A potential is around 100-120 pips.

USD/CAD

Due to the fall of the oil price, USD/CAD continued its growth. So that our yesterday’s scenario remains the same: long positions are in priority.

We can enter the market after a small correction of the price to obtain a better price for enter and a smaller stop loss. SL should be set below the support 1.3668 – 1.3690. A potential of the growth is around 80-90 pips.

AUD/USD

After the strong fall of the price the pair showed a smooth correction. The resistance level 0.7441 – 0.7450 remains relevant and should be used as a place for a stop loss. Short positions can be opened after the end of the correction. The first target is the local minimum. If the price breaks it down, we should move a stop loss to the break even and hold a position until the appearance of reversal signals.

XAU/USD

The fall of the gold price was stopped by strong volumetric support level 1226.00 – 1229.10 and is trading inside it now. Also the price has fallen down pretty much, so there can be a correction of the price. But anyway, there is a confident downtrend, so short positions are still in priority.

We can enter the market after the breakdown of the support on increased volume. A stop loss should be set above the breakout volumetric bar. The target is 1215.00.

The sentiment: all our deals and scenarios are confirmed by the mood of the market.

The bottom line: today the payrolls will be released, so I expect a huge volatility on the market. So my advice is to be extremely careful and close all positions before the news.

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