Daily Technical Forex Forecast 22.08.2019

EUR/USD

The Euro is still trading near the level of support/local minimum 1.1068. Therefore, our previous scenario remains relevant: we may reckon a breakdown of this mark, which will be a great bearish signal. The sink must be keen, rapid 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.

GBP/USD

The Pound continued correcting downwards and is still located inside the local range, where the large volume is concentrated. The boundaries of the consolidation are the support 1.2052 and the resistance 1.2182. Therefore, we can open new positions only after the confident and sharp exit of the price from it. Furthermore, the breakout movement must be supported by the large volume, which will be a more accurate signal for entering the market.

While the price is locked within this range, we’d better omit this instrument from our trading plan.

USD/JPY

The same situation here as the price continues trading inside the local consolidation between the support 105.12 and the resistance 107.60. Hence, we can consider new trading scenarios only after the sharp exit of the price from it. Moreover, the breakout movement must be supported by the large volume, which will be a more reliable signal for entering the market.

While the price is trading inside this range, we’d better stay out of the market.

USD/CAD

The Canadian dollar corrected down after the test of the resistance level, however, the price has already resumed rising and is trading near this mark once again. Thus, our previous scenario remains actual: we may reckon a breakout of the resistance, which will allow us to open long positions. The surge must be keen and supported by the large volume, which will be a more reliable signal for entering the market. A stop loss should be placed below the breakout volume bar. A potential of the deal is more than 100 points.

AUD/USD

The Australian dollar carries on trading within the local consolidation between 2 strong volume levels. They are the support 0.6747 and the resistance 0.6817. Hence, we can consider new trading scenarios only after the rapid and keen exit of the price from the range. Moreover, the move must be supported by the large volume, which will be a more accurate signal for entering the market.

While hte price is trading within this range, we’d better stay out of the market.

XAU/USD

Gold is still trading near the level of support/lower boundary of the local consolidation 1493.20. Hence, we still should prefer a scenario of the breakdown of this mark, which will be a great signal for opening short positions. The movement must be abrupt 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 300 points.

The sentiment: this technical indicator totally confirms our trading scenarios with EUR/USD and USD/CAD, which is a good additional signal. As with gold, the situation is opposite, so that we should be more careful with this instrument. As with other currency pairs, we can open new positions only after the sharp exit of prices from local ranges.

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