Daily Technical Forex Forecast 20.12.2018


EUR/USD

The Euro demonstrated a sharp sink supported by the large volume yesterday. However, the pair is still trading inside the local range between 2 strong volume levels. They are the support level 1.1267 and the resistance level 1.1463.

Hence, we can regard new deals only after the sure breakout of one of these levels and the exit of the pair from the range. The movement must be supported by the large volume, which will insure us against a fake breakout and will be a more secure signal for entering the market.

GBP/USD

The Pound is still trading inside the local range. Nevertheless, considering the presence of the strong downtrend, we should give a little advantage to short positions with this currency pair.

Sales can be opened only after the resumption of the sharp fall, 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 this move. A potential of the deal is more than 100 points.

USD/JPY

The Yen went on falling and is testing the level of support 112.21 at the moment. Thus, our previous scenario is still relevant: we can consider sales, but only after the sure and keen breakdown of the support level. The movement 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.

USD/CAD

The Canadian dollar showed an abrupt rise on the increased volume yesterday. Besides it, we should allocate the new level of support 1.3416, which contains the large volume. Given all these factors, we should consider exceptionally long positions. We can enter the market after a smooth downward correction of the price, in order to get a better entry point. A stop loss should be placed below the level of support. A potential of the deal is more than 100 points.

AUD/USD

The Australian dollar showed a significant and sharp drop and broke out the previous support level/lower limit of the local range. In addition, it is worth emphasizing that the downward movement was supported by the very large volume, which is a strong additional signal. Taking into account all the above factors, we should consider only short positions with this currency pair. Nevertheless, it is better to open sales after a small price correction upwards in order to get a more profitable entry point into the market. A stop loss should be placed just above the beginning of the breakout movement. The potential of the deal is more than 80 points.

XAU/USD

Gold corrected down sharply and on the large volume yesterday. At the moment the pair is located in the local consolidation between 2 volume levels. The first one is the support 1234.30, the second one is the new resistance level 1257.80.

Therefore, we can open new positions with this instrument only after the confident breakout of one of these levels and the exit of the price from the range. Furthermore, the movement must be supported by the large volume, which will be a more reliable and accurate signal for entering the market.

The sentiment: this indicator fully affirms all our trading scenarios today, which is a good additional signal. As with the Euro and gold, we should stay out of the market until the exit of pairs from local consolidation.

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