Daily Technical Forex Forecast 06.09.2017

EUR/USD

EUR/USD is still trading in the range near the level of resistance 1.1906 – 1.1921, where large volume is concentrated. Also we need to notice that this consolidation contains large volume too, that’s why we need to wait for the strong reaction of the price on the level of resistance, an exit of the pair from this range and only then we can consider opening any new deals.

Until that we should stay out of the market.

GBP/USD

GBP/USD showed a significant price increase yesterday, as a result, the previous resistance level/the upper limit of the local consolidation was broken out and now the price is fixed above it. The breakout movement was sharp and on large volume, which only strengthens the significance of this bullish signal.

Given the rapid growth of the price, it is worth considering the scenario of opening long positions for this currency pair. We can open purchases are after a small downward correction to get a more advantageous entry point. A stop loss should be placed below the beginning of the breakout price movement – 1.2975. The potential of the deal is about 120 points.

USD/JPY

The Yen fell down strongly and on large volume yesterday. During this fall the new level of resistance was created, it is 109.15 – 109.26. This level contains large volume + the price fell down rapidly after its formation.

Given such a strong bearish move and the presence of the new resistance, we should consider exceptionally short positions. We can enter the market after the smooth upward correction of the price to obtain a better entry point. A stop loss should be placed above the level 109.26. A potential of the deal is more than 100 pips.

USD/CAD

The pair had tested the level of support 1.2356, but failed to break it and is trading a little bit above it. Given the presence of the strong downtrend and that the rebound of the price up was on average volume, we still should give preference to short positions.

We can enter the market after the confident breakdown of the support on large volume and a fixation of the price below it. A stop loss should be place above the breakdown volume bar. A potential of the deal is more than 100 pips.

AUD/USD

The Australian dollar has broken out the previous resistance, but the further growth of the price was stopped by new resistance 0.8014 – 0.8027, which contains large volume. So that, we can consider long positions only after the sure breakout of this level on large volume. A stop loss should be placed below the breakout volume bar. A potential of the deal is more than 50 pips.

XAU/USD

After the smooth downward correction, gold continued its growth. The upward movement was supported by increased volume, which is a good sign for the continuation of the uptrend for this instrument.

Given these facts we should give preference to long positions. We can enter the market after a smooth downward correction to obtain a better entry point and risk/profit ratio. A stop loss should be placed below the yesterday’s minimum 1325.80. A potential of the growth is way more than 100 pips as there is no resistance at the top of the chart.

The sentiment: the mood of the market shows that we should give advantage to long positions for the Euro, but still we can trade it only after the exit from the range. As for all other instruments, this indicator confirms all our scenarios.

The bottom line: a lot of interesting scenarios are on the market, so we need to watch for profitable entry points and open deals.

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