Daily Technical Forex Forecast 05.02.2019

EUR/USD

The Euro continues trading in the middle of the local consolidation between the level of support 1.1267 and the level of resistance 1.1585. We  also should point out that the large volume is concentrated within this range.

Therefore, we can consider new trading scenarios only after the confident and abrupt 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.

While the price is inside the range, we’d better stay out of the market.

GBP/USD

The Pound fell down and broke down the previous level of support, which is a great bearish signal for us. Moreover, we need to allocate the new level of resistance 1.3094. Hence, we should give preference to short positions.

We can enter the market after a smooth and slight upward correction of the price, in order to obtain a more profitable entry point. A stop loss should be placed above the new level of resistance. A potential of the deal is around 110 points.

USD/JPY

The Yen showed a significant and sharp growth and broke out the previous resistance level. This is a great bullish signal. It is also necessary to point out the new volume level of support 109.35. Thus, we should give preference to long positions with this instrument. Purchases can be opened after a small and smooth price correction down to get a better entry point to the market. A stop loss should be placed just below the support level. The potential of the deal is more than 100 points.

USD/CAD

The Canadian dollar is still trading below the level of resistance 1.3160, where the large volume is concentrated. Thus, we still should give preference to short positions. We can enter the market after a slight correction of the price up, in order to get a better entry point. A stop loss should be placed above the resistance level. A potential of the deal is more than 100 points.

AUD/USD

The Australian dollar resumed rising and is currently trading nigh the level of resistance 0.7292. Therefore, we can consider a scenario of its breakout, which will consent us to open long positions. The growth must be keen and supported by the large volume. A stop loss should be placed below the breakout volume bar. A potential of the deal is around 110 pips.

XAU/USD

Gold corrected downwards and is now located within the local consolidation between 2 strong volume levels. They are the support level 1297.00 and the resistance level 1325.80.

Thus, we can open new deals only after the confident and sharp breakout of one of these levels and the exit of the price from the range. The movement must be supported by the large volume, which will be a more reliable and accurate signal for entering the market.

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

The sentiment: this indicator totally affirms our scenarios with USD/JPY, USD/CAD, AUD/USD (trading against the “crowd”). The situation with GBP/USD is equal, so that we should be more careful while trading this pair. As with EUR/USD and XAU/USD – we can open new positions only after tha sure exit of prices from local ranges.

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