Daily Technical Forex Forecast 28.12.2018


EUR/USD

The Euro showed a significant and sharp growth. Moreover, the upward movement was supported by the increased volume, which is an excellent bullish signal. At the moment, the pair is testing the resistance level/upper limit of the local range, so we can consider a scenario of its breakout. This will allow us to open long positions with the Euro.

The breakout movement must be confident and 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 points.

GBP/USD

The Pound is still trading inside the local range, in which the large volume is concentrated. Yes, there is a strong downtrend, but given that the pair is located in the range right now, we cannot open any deals at the moment.

We can enter the market only after the sharp exit of the price from the consolidation. Furthermore, the breakout movement must be supported by the large volume, which will insure us against a fake breakout and will be a more reliable signal for entering the market.

USD/JPY

The Yen renewed its drop and almost totally swallowed the recent abrupt rise, which is a good bearish signal. Unfortunately, the move was on the small volume, so that we can’t allocate any new level or zone. However, we should regard exceptionally short positions. Sales can be opened only after the continuation of the sharp fall and the sure breakdown of the support level. The move must be supported by the large volume. A stop loss should be placed above this move. A potential of the deal is more than 100 points.

USD/CAD

The Canadian dollar corrected down after the formation of the new resistance level 1.3652. Nevertheless, given the presence of the strong uptrend, we still should prefer a scenario of opening long positions. Purchases can be opened after the resumption of the rise and breakout of this level on 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 100 points.

AUD/USD

The Australian dollar corrected upwards yesterday, but the move was slight and on the small volume. Furthermore, there is a strong downtrend, so that we still should give advantage to short positions. Sales can be opened after a halt of this correction and a resumption of the sharp dip. The fall 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 drop. A potential of the deal is more than 80 points.

XAU/USD

Gold resumed rising and almost totally absorbed the recent abrupt drop, which displays the power of buyers. The movement was supported by the large volume, that only increases its significance and importance. Therefore, we should give preference to long positions.

Purchases can be opened only after a continuation of the surge and sure breakout of the local maximum. The move must be supported by the large volume, which will be a more secure and precise signal for entering the market. A stop loss should be placed below this rise. A potential of the deal is more than 150 points.

The sentiment: this indicator totally affirms all our trading scenarios today, which is a great additional signal. The situation with GBP/USD is uncertain, hence, we should wait for the exit of the pair from local range and only after that we can regard new positions.

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