Daily Technical Forex Forecast 07.12.2018


EUR/USD

The Euro demonstrated a sharp rise on the large volume, but is still trading inside the local range between the support level 1.1267 and the resistance 1.1463. Besides it, we need to point out the large volume accumulation within this consolidation.

Considering all these factors, we can open new deals only after the sure exit of the price from the local range. The movement must be supported by the large volume, which will be a more reliable and accurate signal for entering the market.

GBP/USD

The Pound showed a keen upward adjustment yesterday and is currently locked within the local range between 2 strong levels. They are the support level 1.2670 and the resistance level 1.2880. The large volume is concentrated within this consolidation.

Thus, we must wait for the exit of the price from the consolidation and only after that we can regard new positions. The breakout move should be abrupt and supported by the large volume, which will be a more reliable and accurate signal for entering the market.

USD/JPY

The Yen adjusted up after the formation of the new level of resistance 112.21, which contains the large volume. The pair is trading within the local consolidation between this mark and the level of resistance 113.62 – 113.75. Hence, we can consider new positions only after the breakout of one of these levels and the exit of the price from the range. The breakout move should be keen and supported by the large volume, which will be a more precise signal for entering the market.

USD/CAD

The Canadian dollar corrected down after the creation of the new resistance level 1.3429. The drop was smooth and on the small volume, while the recent surge was on the large one. Therefore, we still should give advantage to long positions. Nevertheless, we can enter the market and open purchases only after the confident breakout of this mark on the large volume. 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 continued its decline and tested the support level/local minimum 0.7202, but could not break it out. At the moment, the price is trading near this mark, and given the recent sharp fall, we can consider a scenario of its breakdown. This will be a great bearish signal and will allow us to open short positions with this pair. The fall should be confident, rapid and on the large volume, which will be a more accurate and reliable signal to enter the market. A stop loss should be placed slightly above the breakout volume bar. The potential of the deal is about 110 points.

XAU/USD

The price fell down after the formation of the new resistance level 1243.50. This level contains the large volume and the pair is located nigh this mark, so that we can consider 2 possible trading scenarios.

  1. A resumption of the rise and a sure breakout of the resistance level, that will be a strong bullish signal. A stop loss should be placed below the breakout volume bar. A potential of the deal is more than 150 points.
  2. A test of the level and a keen rebound of the price down, which will allow us to open sales. A stop loss should be placed above the resistance level. A potential of the deal is around 120 points.

The sentiment: this indicator fully affirms all our trading scenarios, which is a good additional signal. As with other curreny pairs, we should stay out of the market until the sure exit of prices from local consolidations.