Daily Technical Forex Forecast 22.01.2019


EUR/USD

The Euro carried on falling yesterday, but the fall was smooth and on the small volume, so that we can’t allocate any new volume level or zone. Furthermore, the price is trading inside the local range between the support 1.1267 and the resistance 1.1585. The large volume is concentrated within this range.

Given all these factors, we can open new deals only after the sure and abrupt exit of the price from the local range. The breakout 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 goes on trading inside the local range between the level of support 1.2697 and the level of resistance 1.2995. We also should point out that the large volume is concentrated inside this local range.

Hence, we can enter the market and open new positions only after the sure and abrupt exit of the price from the local consolidation. Moreover, the movement must be supported by the large volume, which will be a more precise and secure signal for entering the market.

USD/JPY

The Yen fell down yesterday, but the movement was on the small volume, so that we can’t regard short positions. Considering the recent keen surge and the breakout of the resistance, we still should give a slight preference to long positions. We can enter the market after a resumption of the abrupt surge, but the move was on the large volume, which will be a more reliable signal for entering the market. A stop loss should be placed below the beginning of this move. A potential of the deal is more than 100 points.

USD/CAD

The Canadian dollar demonstrated a sure and abruot move yesterday. At the moment the price is testing the level of resistance/upper boundary of the local consolidation 1.3322. Thus, we can and should regard a scenario of its breakout, which will be a great bullish signal. The rise must be supported by 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 around 130 points.

AUD/USD

The Australian dollar showed an abrupt drop and now the pair is trading near the level of support/lower limit of the local range 0.7117. Hence, we can consider a scenario of its breakdown, which will consent us to open short positions. The sink of the price should be supported by the large volume, which will be a more secure signal for entering the market. A stop loss should be placed above the breakdown volume bar. A potential of the deal is more than 80 points.

XAU/USD

Gold showed a significant and steady drop and broke down the previous support level/lower limit of the local range. Unfortunately, the downward movement was on the small volume. Given these factors, we should give preference to short positions, but at the moment we should not enter the market, since there is no good place for a stop loss.

Sales can be opened after a resumption of a sharp decline of the price, but the movement should be supported by the large volume, which will be a more accurate and strong signal to enter the market. A stop loss should be placed just above the beginning of this fall. The potential of the deal is more than 150 points.

The sentiment: the mood of the market fully affirms our scenarios with the Yen and Australian dollar, which is a good additional signal. The opposite situation with the Canadian dollar and gold, so we should be more careful. As with other currency pairs, we should wait for the exit of prices from local ranges and only then we can open new positions.

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