Daily Technical Forex Forecast 26.12.2018

EUR/USD

The Euro demonstrated a sharp rise yesterday, but the move was on the small volume, so we can’t consider long positions now. Moreover, the price is located within the local consolidation between the support 1.1267 and the resistance 1.1463.

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

GBP/USD

The Pound showed an abrupt surge, but the movement also was on the small volume, so we can’t regard long positions now. Besides it, there is a strong downtrend with the Pound, therefore, we still should give a little preference to short positions.

We can enter the market only after a resumption of the sharp and confident fall, supported by 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 showed a significant and sharp drop on the increased volume, which is an excellent bearish signal for us. Given this factor, as well as the presence of a strong local downtrend, we should consider only short positions with this currency pair. Sales should be opened after a small and smooth price correction upwards in order to get a more profitable entry point. The growth should be on the small volume. A stop loss should be placed slightly above the recent price drop. The potential of the deal is more than 100 points.

USD/CAD

The Canadian dollar went on rising, but the move was on the average volume, hence, we can’t point out any new volume level or zone. However, given the presence of the strong uptrend and the level of support 1.3513, we should consider exceptionally long positions. We can enter the market after a smooth downward correction of the pair, in order to get an acceptable entry point. A stop loss should be placed below the support. A potential of the deal is more than 100 points.

AUD/USD

The Australian dollar corrected upwards yesterday, but he movement was smooth and on the small volume, so that we can’t regard it as a reversal signal. Moreover, considering the recent sharp drop on the large volume, we still should give preference to short positions. We can enter the market after a smooth correction of the price up, in order to obtain a more profitable entry point. A stop loss should be placed above the beginning of the recent abrupt dip. A potential of the deal is more than 80 points.

XAU/USD

Gold showed a keen surge, but the move was on the small volume, so that we can point out any new volume level or zone. Nevertheless, given the presence of the strong local uptrend, we should prefer a scenario of opening long positions.

We can enter the market after a small and smooth correction of the price down, in order to get an acceptable entry point. A stop loss should be placed below the beginning of the current growth. A potential of the deal is more than 150 points.

The sentiment: the mood of the market totally confirms all our trading scenarios, that is a good additional signal for us. As with the Euro and Pound, we should wait for the exit of prices from local ranges and only after that we can consider new positions.

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