Daily Technical Forex Forecast 19.12.2018


EUR/USD

The situation with the Euro remained the same as the pair is still trading inside the local range between the level of support 1.1267 and the level of resistance 1.1463. Yes, the price rose up, but the movement was on the small volume, so that we can’t point out any new level or zones.

Hence, we can regard new deals only after the exit of the price from the local consolidation. The breakout move must be abrupt, sure and supported by the large volume, which will be a more accurate and reliable signal for entering the market.

GBP/USD

The Pound continued its upward correction, but the move was on the small volume, so that we can’t consider long positions now. Furthermore, there is a strong downtrend with this instrument, so that we still should give preference to short positions.

Nevertheless, sales can be opened only after the resumption of the keen fall on the large volume, which will be a more precise signal for entering the market. A stop loss should be located above the beginning of this mark. A potential of the deal is more than 100 points.

USD/JPY

The Yen went on sinking and is testing the level of support/lower boundary of the local range 112.21 at the moment. Thus, we can regard a scenario of its breakdown, which will consent us to open short positions with this pair. The drop must be keen and 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.

USD/CAD

The Canadian dollar showed a significant rise and broke out the previous resistance level at an increased volume, which is an excellent bullish signal. At the moment, the price corrected down, but the movement is smooth and on the small volume, so it does not play a big role. Considering all the factors, we should give preference to purchases with this currency pair. Long positions can be opened after a stoppage of the price drop and a resumption of the rapid growth on the large volume, which will be a more accurate signal to enter the market. A stop loss should be placed slightly below the beginning of yesterday’s breakout movement. The potential of the deal is more than 100 points.

AUD/USD

The Australian dollar is still trading inside the local range between the support level 0.7152 and the resistance level 0.7238. Therefore, our previous scenario is still relevant: we can consider new positions only after the keen and sure exit of the price from the range. The move must be supported by the large volume, which will be a more precise and secure signal for entering the market.

XAU/USD

The price carried on rising and now is located near the local maximum. Yes, the move was on the small volume, so that we can’t allocate any new volume level or zone, but given the presence of the uptrend, we should prefer a scenario of opening long positions.

Purchases can be opened only after the sure and sharp breakout of the local maximum. The move should be supported by the large volume, which 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 more than 150 points.

The sentiment: the mood of the market affirms our trading scenarios with the Yen, Canadian dollar and gold. The situation with the Pound is ambiguous, hence, we should be more careful. As with other instruments, we should stay out of the market until the exit of prices from the local range.