Daily Technical Forex Forecast 29.08.2018
EUR/USD
The Euro adjusted downwards after the formation of the new volume resistance level yesterday. This is the level 1.1727. It should also be noted that the decline was smooth and on the small volume, so we should not consider sales at the moment. As for purchases, we can open them only after the breakout of the resistance level.
The breakout movement must be swift and supported by the large volume, which will be a more accurate signal for entering the market and will insure us against a fake breakout. A stop loss should be placed just below the breakout volume bar. The potential of the deal is about 100 points.
GBP/USD
The Pound tested the resistance level 1.2923, but failed to break it out and then sharply corrected downwards. However, the drop of the pair was on the small volume, so our previous scenario remains actual: we can open long positions only after a confident breakout of the resistance level.
The move should be abrupt and supported by the large volume, which will be a more precise and secure signal for entering the market. A stop loss should be placed just below the breakout volume bar. The potential of the deal is about 150 points.
USD/JPY
The Yen carries on trading inside the local consolidation between the support level 109.82 and the resistance level 111.94. Hence, the best scenario with this currency pair is just to wait for a sure exit of the price from the range and only after that we can deliberate new positions. The breakout move must be supported by the large volume, which will insure us against a fake breakout and will be a more reliable signal for opening new deals.
USD/CAD
The Canadian dollar smoothly adjusted up after the creation of the new support level 1.2895, in which the large volume is concentrated. Given that the price has already resumed the fall and is located near this mark now, we can consider a scenario of its breakdown, which will be a strong bearish signal. This move should be keen and supported by the large volume, which will be a more precise and secure signal for entering the market. A stop loss should be placed just above the breakdown volume bar. The potential of the deal is about 100 points.
AUD/USD
The Australian dollar is still trading in the middle of the local consolidation between the support level 0.7211 and the resistance level 0.7439. Considering this fact, we can regard new trading scenarios only after the confident exit of the pair from the local range. The breakout movement must be supported by the large volume that will insure us against a fake breakout and will be a more secure signal for entering the market.
XAU/USD
The price demonstrated an abrupt fall yesterday and is now located slightly below the resistance level/upper limit of the local range 1215.70. Considering that the drop of the price was on the large volume, we can regard 2 trading scenarios with this instrument.
- A smooth upward correction and the resumption of the sink on the large volume, which will consent us to open sales . A stop loss should be placed a little above the resistance level. The potential of the deal is more than 200 points.
- A resumption of the rise and a sure breakout of the level of resistance on the large volume, which will be an excellent signal for purchases. A stop loss should be placed just below the breakout volume bar. The potential of the deal is more than 150 points.
The sentiment: the mood fo the market totally affirms our deals with EUR/USD and USD/CAD, which is a good additional signal. We should wait for the appearance of confirmation signals with GBP/USD and XAU/USD and only after that we can open new positions. With other instrument, we need to wait for the exit of prices from local consolidations and only aftet that we can regard new scenarios.
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