Daily Technical Forex Forecast 24.08.2018

EUR/USD

The Euro is located between 2 strong volume levels at the moment. They are the support 1.1492 and the resistance 1.1620. Therefore, we can regard new positions only after the exit of the price from this local range.

The breakout movement should be sure and rapid + supported by the large volume, which will insure us against a fake breakout and will be a more secure signal for entering the market. Until that, while the pair is inside the consolidation, it is better to stay out of the market.

GBP/USD

The Pound showed a significant and sharp drop of the price on the large volume yesterday. Moreover, the pair broke down the previous support level, which is an excellent bearish signal for us. It is also worth highlighting a new resistance level 1.2861.
Thus, we should give preference to short positions with this instrument.

Sales can be opened after a small and smooth upward price correction in order to get a more profitable entry point to the market. A stop loss should be placed above the beginning of a sharp decline of the price yesterday. The potential of the deal is about 120 points.

USD/JPY

The Yen grew up strongly yesterday, but the price is still within the local consolidation between the support level 109.82 and the resistance level 111.94. Hence, our previous scenario is actual: we can consider new positions only after a sure exit of the price from the range. The breakout movement should be supported by the large volume, which will be a more accurate and strong signal for entering the market.

USD/CAD

The Canadian dollar also demonstrated the price growth yesterday. The pair is currently trading within the local range between the support level 1.2980 and the resistance level 1.3165. Given this fact, we should wait for a sure and keen exit of the price from the range and only after that we can regard new positions here. The breakout move must be supported by the large volume, which will insure us against a fake breakout.

AUD/USD

The same situation is with the Australian dollar as the price goes on trading inside the local consolidation between 2 strong levels. They are the support 0.7211 and the resistance 0.7439. Hence, we can open new positions only after the sharp exit of the price from the consolidation. Moreover, the breakout movement must be swift and supported by the large volume that will insure against a false breakout and will be a more reliable signal for entering the market.

XAU/USD

Nothing has changed with gold – the price is still trading within the local consolidation between the support level 1165.60 and the resistance level 1215.70. Therefore, our previous scenario remains actual: we must wait for the exit of the pair from the range and only after that we can open new positions.

The breakout movement must be sure and abrupt + supported by the large volume, which will insure us against a false breakout and will be a more accurate and secure signal for opening new deals. While the price is within the consolidation, it is better to stay out of the market.

The sentiment: the mood of the market affirms our trading scenario with the Pound, which is a good additional signal. With all other currency pairs, we can use this indicator only after prices come out of local consolidations.

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