Daily Technical Forex Forecast 08.02.2019

EUR/USD

The Euro ccontinued falling and now is trading near the level of support/the lower limit of the local consolidation 1.1267. Therefore, we can regard a scenario of its breakdown, which will be a great bearish signal and will allow us to open short positions.

The drop of the price should be sharp and supported by the large volume, which will insure us against a false breakdown. A stop loss should be placed above the breakdown volume bar. A potential of the deal is more than 100 points.

GBP/USD

After the creation of the new level of support, the Pound corrected upwards and now is trading inside the local range between 2 strong levels. They are the new support 1.2866 and the previous resistance 1.3094.

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

While the price is locked inside this range, we’d better omit this instrument from our trading plan.

USD/JPY

After the test of the level of resistance 110.05, the Yen corrected downwards and now is trading in the middle of the local range between this mark and the previous level of support 109.35. Thus, the best solution with the Yen is just to wait for the breakout of one of these levels and the confident exit of the price from the range and only after that we can consider new positions. The breakout movement must be keen and supported by the large volume, which will be a more reliable signal for entering the market.

While the price is trading within this consolidation, we’d better stay out of the market.

USD/CAD

The Canadian dollar showed a significant and sharp growth of the price on the increased volume and broke out the previous resistance level, which is an excellent bullish signal. It is also necessary to allocate a new level of support 1.3257, in which the large volume is concentrated. Considering all these factors, we should give preference to long positions with this currency pair. Purchases can be opened after a small and smooth price correction, in order to get a more profitable entry point into the market. A stop loss should be placed just below the support level. The potential of the deal is about 120 points.

AUD/USD

The Australian dollar went on sinking and is currently testing the level of support/lower limit of the local range 0.7084. Thus, we can reckon a scenario of its breakdown, which will be a great bearish signal and will allow us to open short positions. The fall must be sharp and supported by the large volume, which will insure us against a fake breakdown move. A stop loss should be placed above the breakdown volume bar. A potential of the deal is more than 80 points.

XAU/USD

Nothing has changed with gold as the price is still locked inside the local range between the support 1297.00 and the resistance 1325.80. Thus, our previous scenario remains actual: we can consider new positions only after the exit of the price from the range.

The breakout move must be abrupt and supported by the large volume, which will be a more reliable and accurate signal for entering the market.

While the price is locked inside this range, we’d better skip this instrument from our trading plan.

The sentiment: this indicator totally affirms all out trading scenarios today, which is a great additional signal for us (trading against a “crowd”). As with GBP/USD, USD/JPY and XAU/USD, we can open new positions only after the confident and sharp exit of prices from local ranges.

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