Daily Technical Forex Forecast 01.02.2019


EUR/USD

The Euro falied to continue rising and sharply corrected downwards yesterday. The price fully absorbed the recent abrupt growth. Moreover, the pair is still located inside the local consolidation 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 positions only after the confident and sharp exit of the price from the consolidation. The breakout movement must be supported by the large volume, which will be a more precise and secure signal for entering the market.

Until that, we’d better stay out of the market.

GBP/USD

The Pound is still located above the level of support 1.3069 – 1.3102. This mark contains the large volume, so that we still should give preference to long positions until its breakdown.

We can enter the market after a resumption of the sharp rise on the large volume, which will be a more reliable signal for entering the market. A stop loss should be placed below the level of support. A potential of the deal is more than 120 points.

USD/JPY

The Yen grew up yesterday, but the move was smooth and on the small volume, so that we can’t consider long positions. Besides it, given the recent sharp drop on the large volume, we should prefer a scenario of opening short positons. We can enter the market after a continuation of this correction, in order to get a more profitable entry point. A stop loss should be placed above the resistance 109.64 – 109.73.¬† A potential of the deal is more than 100 points.

USD/CAD

The Canadian dollar continues trading near the level of support 1.3118. Therefore, the previous scenario remains reevant: we can consider a scenario of its breakdown, which will allow us to open sales. The drop of the pair must be supported by the large volume, which will be a more reliable signal for entering the market. A stop loss should be placed above the breakdown volume bar. A potential of the deal is more than 100 points.

AUD/USD

The Australian dollar corrected down after the formation of the new level of resistance 0.7292. Nevertheless, the fall was smooth and on the small volume + the pair is located near this mark, so that we can consider a scenario of the breakout of this level. The surge must be supported by the large volume, which will insure us against a fake breakout. A stop loss should be placed below the breakout volume bar. A potential of the deal is more than 110 points.

XAU/USD

Gold showed a steady decline after the formation of a new resistance level 1325.80. The rather large volume is concentrated inside this mark. Nevertheless, given the presence of a strong local uptrend, we still should give preference to long positions with this instrument.

Long positions can be opened after the resumption of a sharp growth and the rapid breakout of the new level of resistance. The breakout movement should be supported by the large volume, which will be a more accurate 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 150 points.

The sentiment: this indicator totally confirms all our trading scenarios, which is a nice additional signal for us. As with the Euro, we should wait for the exit of the price from the range and only after that we can open new positions.

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