Daily Technical Forex Forecast 23.01.2019


EUR/USD

The situation with the Euro remains the same as the price is still trading inside the local range between 2 strong levels. They are the support 1.1267 and the resistance 1.1585. Besides it, we should point out the large volume accumulation within this consolidation.

Hence, we can regard new trading scenarios only after the sure and sharp exit of the price from the local range. The breakout movement must be supported by the large volume, which will be a more secure and accurate signal for entering the market.

GBP/USD

The Pound showed a significant and rapid growth of the price yesterday. At the moment, the pair is trading near the resistance/upper limit of the local range 1.2995. Thus, we can consider a scenario of the breakout of this mark, which will be an excellent bullish signal and will allow us to open long positions with the Pound.

The breakout movement should be sharp and on the large volume, which will be a more accurate and strong signal to enter the market. A stop loss should be placed slightly below the breakout volume bar. The potential of the deal is more than 120 points.

USD/JPY

The Yen indicated a keen surge on the increased volume yesterday. Besides it, we must allocate the new support level 109.15, which contains the large volume. Therefore, we should give advantage to long positions. We can enter the market after a smooth downward correction, in order to get a more profitable entry point. A stop loss should be placed below the new support. A potential of the deal is more than 100 points.

USD/CAD

The Canadian dollar rose up and break out the previous resistance level, which is a good bullish signal. However, the price is correcting down now, thus, we can consider purchases only after a stoppage of this drop and a resumption of the sharp growth, supported by the large volume. It will be a more secure signal for entering the market. A stop loss should be located below this move. A potential of the deal is around 120 points.

AUD/USD

The Australian dollar continued falling and tested the level of support 0.7117. The pair failed to break it down, nevertheless, it is still trading near this mark, so that we can regard a scenario of its breakdown, which will consent us to open short positions. The sink should be sharp and 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 restarted growing and is localted within the local range between the support level 1277.00 and the resistance levle 1297.00 once again. Furthermore, the large volume accumulation is concentrated inside this consolidation.

Considering all these factors, we can open new deals only after the sure and abrupt exit of the price from the range. The breakout movement must be supported by the large volume, which will be a more precise and reliable signal for entering the market.

The sentiment: the mood of the market confirms all our trading scenarios, which is a great additional signal. The only exception is the Yen, where the situation is equal, hence, we should be more careful. As with other pairs, we should wait for the exit of prices from local ranges and only then we can open new deals.