Daily Technical Forex Forecast 26.07.2019

EUR/USD

After the formation of the new level of support 1.1109, the price sharply corrected upwards. Nevertheless, after the appearance of the strong and large volume at the top of this movement, the price resumed falling. Now the pair is located near this mark. Given the presence of the strong local downtrend, we may reckon a breakdown of this level, which will be a great bearish signal.

The fall of the price must be keen, confident and supported by the large volume, which will be a more accurate signal for entering the market. A stop loss should be placed above the breakdown volume bar. A potential of the deal is more than 100 points.

If the price continues correcting upwards, we’d better stay out of the market.

GBP/USD

The price resumed falling and now is trading near the level of support 1.2400. Given that the drop of the pair was supported by the large volume, we can consider a scenario of its breakdown, which will allow us to open short positions.

The sink of the price must be rapid, confident and supported by the large volume, which will insure us against a fake breakdown. A stop loss should be placed above the breakdown volume bar. A potential of the deal is more than 120 points.

USD/JPY

The Yen demonstrated a huge drop supported by the very large volume and broke out the previous level of resistance, which is a great bullish signal. Besides it, we need to allocate the new support level 108.42. Thus, we should consider exceptionally long positions. We can enter the market after a smooth downward correction, in order to get a better entry point. A stop loss should be placed below the breakout volume bar. A potential of the deal is more than 100 points. S

USD/CAD

The Canadian dollar showed a sharp growth supported by the large volume and broke out the previous resistance level, which is a great bullish signal. Moreover, we should point out the new support level 1.3120, that resides the large volume. Hence, we should regard exceptionally long positions. We can enter the market after a smooth downward correction of the price, in order to get a more profitable entry point. A stop loss should be placed below the support level. A potential of the deal is more than 100 points.

AUD/USD

The Australian dollar went on falling  on the large volume yesterday. Besides it, we need to allocate the new resistance level 0.6975, which contains the large volume. Therefore, we should reckon only short positions at the moment. Sales can be opened after a slight upward correction, in order to get a better entry point. A stop loss should be placed above the resistance level. A potential of the deal is more than 80 points.

XAU/USD

The price showed a sharp fall supported by the large volume yesterday. Now the pair is located near the level of support/lower boundary of the local range 1404.50. Hence, we may regard a scenario of its breakout, which will allow us to open short positions.

The fall of the price must be confident, rapid and supported by the large volume, which will be a more secure signal for entering the market. A stop loss should be placed above the breakdown volume bar. A potential of the deal is more than 150 pips.

The sentiment: this technical indicator totally affirms all our trading scenarios except the one with USD/CAD and XAU/USD, hence, we should be more careful trading these instruments.

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