Daily Technical Forex Forecast 06.12.2018


EUR/USD

The Euro is still trading within the local range between 2 strong volume levels. They are the level of support 1.1267 and the level of resistance 1.1463. Beside it, we should allocate that the large volume is concentrated inside this local consolidation.

Considering all these factors, we can regard new deals only after the sure and sharp breakout of one of these levels and the exit of the price from the consolidation. The move must be supported by the large volume, which will insure us against a fake breakout.

GBP/USD

The Pound adjusted upwards after the test of the support level 1.2670 yesterday. However, the price has already resumed sinking and is trading near this mark at the moment. Therefore, we still can regard a scenario of its breakdown, which will consent us to open short positions.

The fall of the price should be abrupt and supported by the large volume, which will be a more secure and precise signal for entering the market. 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 resumed falling, but is still trading inside the local range between 2 strong levels. They are the support level 112.35 and the resistance level 113.62 – 113.75. Thus, our previous scenario remains actual: we can enter the market only after the confident exit of the price from the consolidation. Furthermore, the breakout move must be supported by the large volume, which will be a more secure signal for entering the market.

USD/CAD

The Canadian dollar rose rapidly and sharply and broke out the resistance level yesterday. Moreover, the breakout movement was supported by the very large volume, which only enhances its value. Taking into account all these factors, we should consider only long positions with this currency pair. Purchases can be opened after a small and smooth price correction down to get a better entry point. The drop should be on the small volume. A stop loss should be placed slightly below yesterday’s breakout volume bar. A potential of the deal is more than 100 points.

AUD/USD

The Australian dollar showed a sharp sink and is trading near the level of support/lower limit of the local range 0.7202 at the moment. That’s why we can consider a scenario of its breakdown, which will be a great bearish signal. The drop should be keen, abrupt and supported by the large volume, which will insure us against a false breakdown. A stop loss should be placed above the breakdown volume bar. A potential of the deal is around 110 points.

XAU/USD

The price resumed rising and is currenty located near the level of resistance/local maximum 1241.50 at the moment. Considering the recent abrupt growth we can and should regard a scenario of its breakout, which will consent us to open long positions.

The surge of the pair should be abrupt and supported by the large volume, which will be a more secure and accurate signal for entering the market. A stop loss should be placed below the breakout volume bar. A potential of the deal is more than 150 points.

The sentiment: this indicator fully confirms all our trading ideas today, which is a strong additional signal. As with the Euro and Yen, we can ponder new deals only after the keen and sure exit of prices from local consolidations.