Daily Technical Forex Forecast 21.12.2018


EUR/USD

Yesterday, the Euro showed a significant and rapid growth. At the moment, the price is testing the resistance level/upper limit of the local range 1.1463. Given that the upward movement was on the large volume, we can consider a scenario of the breakdown of this mark, which will allow us to open long positions with this currency pair.

The surge of the pair should be sharp, confident, and also supported by the large volume, which will be a more accurate and reliable signal to enter the market. A stop loss should be placed slightly below the breakout volume bar. The potential of the deal is about 130-140 points.

GBP/USD

The situation with the Pound has not changed as the price continues trading inside the local range. Nevertheless, given the presence of the strong downtrend with this instrument, we still should give advantage to short positions.

Sales can be opened only after a resumption of the sharp and sure sink of the pairon the large volume, which will be a more secure signal for entering the market. A stop loss should be placed above this move. A potential of the deal is more than 100 points.

USD/JPY

The Yen indicated a strong drop and broke out the previous level of support. The sink of the price was supported by the large volume and the new level of resistance was created, it’s 111.65. Considering all these factors, we should regard exceptionally short positions. We can enter the market after a smooth upward correction, in order to get a more profitable entry point. A stop loss should be placed above the new resistance level. A potential of the deal is more than 100 points.

USD/CAD

It is necessary to allocate the new level of resistance 1.3427, which contains the large volume and stopped the rise of the pair. However, there is a strong uptrend and the price is trading near this mark, so that we can consider a scenario of its breakout, which will allow us to open purchases. The movement should be abrupt and supported by the large volume, which will be a more precise signal. 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 corrected up and tested the level of resistance 0.7145, but failed to break it out.  The pair has already resumed its fall. Given the recent abrupt sink and the presence of the strong resistance level, we still should regard a scenario of opening short positions. We can enter the market after a smooth upward correction of the pair, in order to get a more profitable entry point. A stop loss should be placed above the resistance level. A potential of the deal is more than 80 points.

XAU/USD

The price went on rising yesterday. Besides it, the growth was sharp and supported by the large volume , which is a strong bullish signal. Hence, we should consider long positions with this instrument.

Nevertheless, purchases should be opened after a smooth downward correction of the price, in order to obtain a better entry point. A stop loss should be placed below the beginning of the breakout movement. A potential of the deal is more than 150 points.

The sentiment: the mood of the market fully affirms all our trading scenarios, which is a good additional signal.

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