Daily Technical Forex Forecast 08.01.2019


EUR/USD

The Euro showed a sharp growth on the increased volume and tested the resistance level/upper limit of the local range 1.1476. The price could not break it out, on the other hand, it remained trading near this mark. Thus, our previous scenario remains relevant: we can consider a scenario of the breakout of this level, which will allow us to open long positions.

The upward movement should be abrupt and on the large volume, which will insure us against a false breakout. A stop loss should be placed slightly below the breakout volume bar. The potential of the deal is more than 120 points.

GBP/USD

The Pound showed a smooth rise and broke out the previous level of resistance yesterday. However, the surge was on the small volume, so we can’t point out any new level or zone. Besides it, the probability of the false breakout is quite high, so we can’t open purchases now.

We can consider long positions only after the resumption of the rise, but the move must be abrupt and 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 the beginning of this growth. A potential of the deal is around 130 points.

USD/JPY

The Yen goes on trading inside the local range between 2 strong levels. They are the support level 107.28 and the resistance level 109.46. Therefore, our previous scenario remains relevant: we can consider new positions only after the confident and keen exit of the pair from the consolidation. Furthermore, the move must be supported by the large volume, which will be a more secure signal for entering the market.

USD/CAD

The fall with the Canadian dollar went on, moreover, the sink was on the increased volume, which is a nice bearish signal. Hence, we should consider exceptionally short positions at the moment. Sales can be opened only after a smooth upward correction, in order to get a more profitable entry point. A stop loss should be placed above the recent abrupt sink. A potential of the deal is around 120 points.

AUD/USD

The Australian dollar carried on growing, but the surge was smooth and on the small volume, so that we can’t allocated any new level or zone. Nevertheless, considering the recent abrupt rise on the large volume, we still should give a slight preference to purchases. Long positions can be opened after a smooth correction of the pair down, in order to obtain a more profitable entry point. A stop loss should be placed below the beginning of the rise. A potential of the deal is more than 80 points.

XAU/USD

The price fell down yesterday, but the movement was on the small volume. Besides it, there are a strong uptrend and the level of support 1277.00, which contains the large volume. Thus, we still should give advantage to long positions with this instrument.

Purchases can be open only after a resumption of the sharp growth, but the move 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 below the support level. A potential of the deal is around 120-130 points.

The sentiment: the mood of the market affirms all our scenarios, which is a good additioanl signal. The only exception is the Australian dollar, so we should be more careful with this instrument. As with the Yen, we should wait for the exit of the pair from the range and only after that we can open new positions.