Daily Technical Forex Forecast 31.08.2018

EUR/USD

The Euro demonstrated an abrupt fall on the large volume yesterday. We also should point out the new support level 1.1642, in which the increased volume is concentrated. At the moment the price is trading in a small range between this mark and the resistance 1.1727. Therefore, we can regard new deals only after the sure exit of the pair from the consolidation.

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

GBP/USD

The Pound didn’t show any significant moves yesterday and is located in a small range just above the support level 1.2945. Given the recent keen rise of the pair on the large volume, we still should give advantage to long positions.

We can enter the market aftert a small and smooth correction of the price down, in order to obtain a more profitable entry point. A stop loss should be placed a little below the support level. The potential of the deal is about 120 points.

USD/JPY

The Yen sank strongly yesterday and once again is located in the middle of the local range between the support level 109.82 and the resistance level 111.94. Hence, the best decision is jsust to wait for a confident and abrupt breakout of one of the levels and the exit of the price from the consolidation. The move must be supported by the large volume that will insure us against a false breakout and will be a more accurate signal for entering the market.

USD/CAD

The Canadian dollar also corrected on the large volume yesterday and the price is locked within the local range between the support 1.2895 and the resistance 1.3165 at the moment. Considering this fact, we can regard new positions only after a confident exit of the pair from the consolidation. The move should be sharp and supported by the large volume, which will be a more precise and secure signal for entering the market.

AUD/USD

The Australian dollar is still within the local range, but yesterday the pair showed a significant drop on the increased volume and is now trading near the support/lower boundary of this range 0.7211. This allows us to consider a scenario of a breakdown of this mark, which will be an excellent bearish signal. The breakout movement must be confident and sharp + supported by the large volume, which will insure us against a fake breakdown and will be a more reliable signal for entering the market. A stop loss should be placed just above the breakdown volume bar. The potential of the deal is more than 80 points.

XAU/USD

We should point out the new volume level of support with gold. It is 1196.40. The pair is currently trading in a small consolidation between this mark and the resistance level 1215.70, so we can consider new positions only after a sure exit of the pair from it.

The move should be sure and swift + supported by the large volume, which will be a more precise and strong signal for entering the market and will insure us against a fake breakout. While the price is located inside the range, it is better to stay out of the market.

The sentiment: the mood of the market totally affirms our deal with AUD/USD. As with GBP/USD, the sentiment indicates the priority of sales, but while the price has not broken down the support, we should give preference to long positions. With all other instrument, we can use the sentiment only after the exit of prices from ranges.

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