Daily Technical Forex Forecast 12.12.2018


EUR/USD

The Euro showed an abrupt fall and is currently  located near the level of support/lower limit of the local range 1.1267. The drop was supported by the large volume, which is a great bearish signal. So given all these factors, we should prefer short positions.

Sales can be opened after the sure and sharp breakdown of the level of support. The sink must be supported by the large volume, which will insure us against a fake breakdown. A stop loss should be placed above the breakdown volume bar. A potential of the deal is more than 100 points.

GBP/USD

As predicted, the Pound continued its decline and broke down the previous support level, which is an excellent bearish signal. Moreover, the price drop was supported by the large volume, which only enhances its value. Thus, we should give preference to short positions.

Sales can be opened after a small and smooth correction of the price upwards, in order to get a better entry point. A stop loss should be placed slightly above the beginning of a sharp fall of the price. The potential of the deal is more than 100 points.

USD/JPY

The Yen went on growing and is trading near the resistance level/upper limit of the local consolidation 113.62 – 113.75. Thus, our previous scenario remains relevant: we can regard long positions after the sure and sharp breakout of the resistance. The rise must be supported by the large volume, which will be a more secure signal for entering the market. A stop loss should be placed below the breakout volume bar. A potential of the deal is around 80 points.

USD/CAD

The Canadian dollar is located near the level of resistance/upper limit of the local range 1.3429. Thus, our previous scenario is still actual: we can consider a breakout of this mark, which will consent us to open long positions. The surge should be supported by the large volume, which will insure us against a fake breakout. 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 is still locked inside the local range below the level of resistance 0.7238. Considering the presence of the local downtrend, we still should give advantage to short positons. Nevertheless, we can enter the market only after a resumption of the keen fall on the large volume, which will be a more secure and precise signal for entering the market. A stop loss should be placed above the resistance level. A potential of the deal is more than 80 points.

XAU/USD

Gold adjusted down and is testing the support level 1242.70 now. However, given the presence of the strong uptrend with this instrument, we still should prefer a sceanario of opening long positions.

Purchases can be opened after a keen and sure rebound of the price from the support level. The movement must be supported by the large volume, which will be a more secure signal for entering the market. A stop loss should be placed below the support level. A potential of the deal is more than 150 points.

If the price breaks down the support, we still should give advantage to long positions.

The sentiment: the mood of the market totally affirms  all our scenarios today, which is a great additional signal. So we need to wait for the appearance of good entry points and after that we can open new positions.