Daily Technical Forex Forecast 25.01.2019

EUR/USD

The Euro showed a significant and sharp drop of the price yesterday. At the moment, the pair is trading near the support level/lower limit of the local range. Given that the decline was on the large volume, we can consider the scenario of the breakdown of this mark, which would be an excellent bearish signal and allow us to open short positions with this instrument.

The fall of the price should be confident and supported by the large volume, which will be a more accurate and strong signal to enter the market. A stop loss should be placed slightly above the breakout volume bar. The potential of the deal is more than 100 points.

GBP/USD

The Pound showed a shar growth. Besideis it, we must allocated the new level of support 1.3024, which contains the large volume. Considering all these factors, we should prefer a scenario of opening long positions with this pair.

Purchases can be opened after a smooth downward correction of the pair, in order to obtain a more profitable entry point. A stop loss should be placed below the support level. A potential of the deal is more than 120 points.

USD/JPY

The Yen restarted growing and is currently testing the level of resistance/the upper limit of the local consolidation 109.92. Thus, we can and should regard a scenario of its breakout, which will be a great bullish signal. The rise must be abrupt and 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 more than 100 points.

USD/CAD

The Canadian dollar tested the level of resistance 1.3367 and then corrected down. However, the pair is still located near this mark, hence, we can consider its breakout, which will allow us to open long positions. The surge must be sharp and supported by the large volume, that will be a more secure signal for entering the market. A stop loss should be placed below the breakout volume bar. A potential of the deal is around 120 points.

AUD/USD

The Australian dollar rose up yesterday, but the move was smooth and on the small volume, so that we can’t consider it as a reversal signal. Therefore, given the recent abrupt fall, we should prefer a scenario of opening short positions. We can enter the market after a resumption of the drop, but the move must be supported by the large volume. A stop loss should be placed above the beginning of this move. A potential of the deal is more than 80 points.

XAU/USD

The price tested the level of support/lower limit of the local range 1277.00, but failed to break it down. Hence, the pair is still located within the local consolidation between this mark and the previous resistance level 1297.00. The large volume is concentrated inside this range.

Given all these factors, we can enter the market only after the sure and abrupt exit of the price from the consolidation. Moreover, the movement must be supported by the large volume, which will insure us against a fake breakout.

The sentiment: the mood of the market affirms all our trading scenarios today, which is a great additional signal for us. The only exception is the Yen, so we should wait for the appearance of the strong confirming signal. As with gold, we must wait for the exit of the pair from the local consolidation and only then we can open new deals.

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