Daily Technical Forex Forecast 22.12.2017


EUR/USD

The Euro failed to continue its previous upward movement and now is correcting down. Also we should point out the resistance level/local maximum, where large volume is concentrated. This is the level 1.1896. On the other hand, there is a quite strong local uptrend with this currency pair, that’s why we still should give preference to long positions.

volume euro

We can enter the market after a resumption of the growth and a sure breakout of the level of resistance. The breakout movement must be abrupt and supported by large volume. This will insure us from fake breakout and 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 around 80-90 pips.

buy euro

GBP/USD

The Pound is still located in the local consolidation 1.3318 – 1.3544, where large volume accumulation is concentrated. That’s why our previous scenario remains the same – we can trade this instrument only after the exit of the price from the range.

volume gbp

The breakout movement must be abrupt and keen + supported by large volume in order to avoid any fake breakouts. Only after that we can consider new positions with this currency pair.

Until that it is better to stay out of the market.

trade gbp

USD/JPY

The price has tested the resistance level/the upper limit of the consolidation 113.65 but failed to break it out and now is located below this level. In general, the situation remained the same – we can trade this instrument only after a sharp exit of the price from the consolidation, but given the fact, that the price is near the resistance, we can suppose its breakout as more likely scenario.

trade jpy

USD/CAD

USD/CAD showed a precipitous fall and broke down the previous support level/the lower limit of the consolidation. The breakdown movement was very sharp and on large scale, which only strengthens the significance of this movement. It is also necessary to note a new level of resistance, which was formed during this downward movement. This is the level 1.2742 – 1.2767. Large volume is concentrated in this level and now the price is testing it.
Considering all the above factors, it is worth giving preference to short positions with this currency pair. Sales should be opened after a rebound of the price down from the resistance level. The fall must be sharp, which will be a more accurate signal for entering the market. A stop loss should be placed slightly above the resistance 1.2742 – 1.2767. The fall potential is 80-90 points.

sell cad tfxi

AUD/USD

Our previous scenario was executed as the price continued its growth. Yes, the move was on average volume, but still it is a good bullish signal for us. We can enter the market after a smooth correction of the price on small volume which will be considered as a technical one. A stop loss should be placed below the beginning of the yesterday’s growth. A potential of the deal is 60 pips.

buy aud

XAU/USD

The local uptrend with gold continued. The price growth was smooth and on small volume, so there is no a good situation for trading at the moment because we don’t have a secure place for a stop loss. Nevertheless, we still should give preference to long positions.

volume gold

We can enter the market after a smooth correction of the price down on small volume and a resumption of the growth on large volume. The upward move must be abrupt, so it will be a stronger signal for entering the market. A stop loss should be placed below the beginning of the move. A potential of the deal is around 80-90 pips.

buy gold

The sentiment: this indicator confirms our scenarios with EUR/USD, USD/CAD and AUD/USD. The situation with gold is almost equal, so we should wait for some additional signal here.

sentiment

The bottom line: most probable that the market will not show any significant moves before the Christmas, but anyway we should focus on EUR/USD, USD/CAD and AUD/USD as these instruments have interesting situation for trading.

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