Daily Technical Forex Forecast 14.12.2018


EUR/USD

The Euro didn’t demonstrate any significant move yesterday and is still located inside the local range between 2 strong levels. They are the support level 1.1267 and the resistance level 1.1463. We also should point out the large volume within this consolidation.

Thus, we can consider new trading scenarios only after the sure and keen exit of the price from this local range. Furthermore, the breakout move should be supported by the large volume, which will be a more secure signal for entering the market.

GBP/USD

The Pound continued correcting up, but the move was smooth and on the small volume, so we can’t either regard long positions, or allocate any new level at the moment. On the other hand, considering the presence of the strong downtrend, we still must give preference to short positions with this instrument.

Nevertheless, we can enter the market after a stoppage of the rise and a resumption of a keen sink. The move must be supported by the large volume, which will be a more reliable and accurate signal for entering the market. A stop loss should be placed above the beginning of the move. A potential of the deal is more than 100 points.

USD/JPY

The Yen tested the level of resistance 113.62 – 113.75, but failed to break it out. However, the price is tradng near this mark, so we still can regard its breakout, which will allow us to open purchases. The movement should be confident and sharp. It also 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 around 80 points.

USD/CAD

The Canadian dollar carries on trading in the local range between the level of support 1.3270 and the level of resistance 1.3429. Thus, we can consider new deals here only after the confident breakout of one of these levels and the exit of the pair from the range. The breakout move should be supported by the large volume, which will be a more reliable signal for entering the market.

AUD/USD

The Australian dollar indicated a sharp fall and is testing the support level/lower limit of the local consolidation 0.7183 now. Hence, we can and should consider a scenario of its breakdown, which will be a great bearish signal for us. The sink should be keen and supported by the large volume, which will insure us against a fake breakdown and will be a more 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 80 points.

XAU/USD

Gold continued its smooth downward correction and broke down the previous support level yesterday. However, the price drop was on the average volume, so we can not single out any new level. It is also worth noting that there is a strong uptrend with gold, so we still should give preference to long positions.

We can enter the market after a stoppage of the fall and the resumption of a sharp rise of the price. Moreover, the upward movement should be supported by the large volume, which will be a more reliable signal to enter the market. A stop loss should be placed slightly below the breakout volume bar. The potential of the deal is more than 150 points.

The sentiment: this indicator affirms all our trading scenarios today, which is a good additional signal. It is possible to consider new positions with EUR/USD and USD/CAD only after the exit of these pairs from local consolidations.

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