Daily Technical Forex Forecast 01.06.2017


EUR/USD

The euro grew up and is trading in the level of resistance 1.1231 – 1.1243. The move was abrupt and was supported by really large volume. It is a sign that bulls are dominating the market now. So the most possible scenario is a breakout of the resistance which will be a good signal for opening long positions for the euro.

volume euro

We can enter the market after a confident breakout (bullish momentum) of the resistance with further fixation of the price above it. A stop loss should be placed below the beginning of the volume growth. A potential of the deal is around 80-90 pips.

buy euro

GBP/USD

After the another one test of the support level 1.2783 – 1.2792 the pound showed a strong and sharp growth. The movement was on very large volume so that we can’t consider short positions any more.

Also we need to highlight the new level of resistance 1.2899 – 1.2913 which contains large volume and stopped the growth of the price yesterday.

volume gbp

Given all these factors, we can open long positions after a breakout of the resistance 1.2899 – 1.2913 on increased volume. A stop loss should be placed below the breakout volume bar. The target is 1.3040.

buy gbp

USD/JPY

USD/JPY could not continue falling and is trading in a downward consolidation right now. In such a complicated situation the best decision will be to wait for the resumption of a downtrend and the breakout of the local minimum 110.35. After that we can open short positions with a stop loss set above the breakdown volume bar. A potential of the fall is around 90-100 pips.

sell jpy

USD/CAD

The strong fall of oil prices caused the growth of USD/CAD and a creation of new resistance level 1.3498 – 1.3520, which contains large volume.

Overall, the pair is in the consolidation, but given yesterday’s move we should consider the scenario of the breakout of the resistance that will be a good bullish signal. If the price confidently breaks it out we open long positions with a stop loss set below the beginning of the growth. The target is 1.3602.

buy cad

AUD/USD

The pair showed a strong and abrupt fall of the price during the Asian session tonight. Such a bearish momentum is a good signal that sellers are dominating the market and we need to give an advantage to short positions.

Unfortunately, volume is spread throughout the movement, so we can’t point out new levels or zones. Anyway, we can enter the market if the price resumes its fall after a small and smooth correction. A stop loss should be set above the level 0.7455. A potential of the fall is around 80 pips.

sell aud

XAU/USD

Gold resumed its growth on large volume. It is worth highlighting a new volume resistance level, which is also a local maximum 1271.40 – 1273.60. After the formation of this level, the price jumped sharply down, so it is likely that at this point the sellers dominated.

volume gold

Nevertheless, given the resumption of the uptrend and a breakout of the previous high, it is worth working for a breakdown of this level, and not for a rebound.
We can open long positions after a confident and sharp breakdown of the resistance 1271.40 – 1273.60. This movement must be supported by increased volume in order to avoid a false signal. A stop loss should be set under the breakout volume bar. The target is 1287.40.

buy gold

The sentiment: the sentiment of the market confirms all our scenarios which is a good signal for active trading today .

sentiment

The bottom line: EUR/USD, GBP/USD and gold are priority instruments for trading today. USD/CAD is also interesting, especially if breaks out the resistance.