Daily Technical Forex Forecast 29.01.2019


EUR/USD

The Euro goes on trading within the local range between the level of support 1.1267 and the level of resistance 1.1585. It is also necessary to allocate that the large volume is concentrated inside this consolidation.

Hence, we should wait for the sure and sharp exit of the price from this consolidation and only after that we can open new positions. The breakout movement must be supported by the large volume, which will be a more accurate signal for entering the market.

GBP/USD

The Pound dropped down yesterday, but the sink was slight and on the small volume, so that we can’t regard it as a reversal signal. Besides it, there is a strong uptrend with this currency pair, therefore, we still should give preference to long positions.

Purchases can be opened after a stoppage of the fall and a resumption of the sharp surge, supported by the large volume, which will be a more accurate 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 120 points.

USD/JPY

The Yen tested the level of support/lower boundary of the local consolidation 109.15, but could not break it down.  On the other hand, the price is still trading nigh it, so we can consider a scenario of the breakout of this mark, which will be a great bearish signal. The drop should be supported by the large volume, which will insure us against a fake breakdown. A stop loss should be placed above the breakdown volume bar. A potential of the deal is more than 100 points.

USD/CAD

The Canadian dollar rose up yesterday and now is trading in the middle of the local range between the support level 1.3185 and the resistance level 1.3367. Therefore, we can open new deals only after the confident exit of the price from the local consolidation. The breakout movement must be supported by the large volume, which will be a more secure and precise signal for entering the market.

AUD/USD

The Australian dollar is also located within the local range between 2 strong volume levels. They are the support level 0.7084 and the resistance level 0.7235. Hence, we can open new deals only after the breakout of one of these levels and the sure exit of the price from the consolidation. The breakout movement should be supported by the large volume, which will be a more reliable signal for entering the market.

XAU/USD

Gold tested a new support level 1297.00, and then resumed its growth. Moreover, the large volume is concentrated in this mark, which only enhances its value and strength. It is also worth noting that the upward movement was sharp and confident. Given all these factors, as well as the previous rapid price growth, we should regard exceptionally long positions with this instrument.

Purchases should be opened after a small and smooth correction of the price down to get a better entry point to the market. A stop loss should be placed just below the support level. A potential of the deal is more than 150 points.

The sentiment: the mood of the market affirms all our trading scenarios today, which is a great additional signal for us. As with other currency pairs, we should wait for the exit of the price from the local consolidation and only after that we can regard new positions.

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