Daily Technical Forex Forecast 12.02.2019


EUR/USD

The Euro showed a significant and sharp drop yesterday and now is testing the support level/lower limit of the local range 1.1267. It is also worth noting that the downward movement was on the increased volume. Considering all these factors, we should reckon a scenario of the breakdown of this mark, which will allow us to open short positions with the Euro.

The breakout movement must be confident and on the large volume, which will be a more accurate and reliable signal to enter the market. A stop loss should be placed slightly above the breakout volume bar. A potential of the deal is more than 100 points.

GBP/USD

The similar situation with the Pound as the price fell down and now is testing the level of support 1.2866. The movement was on the increased volume. All these give us a possibility to consider a scenario of its breakdown, which will allow us to open short positions.

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 located above the breakdown volume bar. A potential of the deal is more than 110 points.

USD/JPY

The Yen grew up and broke out the previous level of resistance, which is a great bullish signal. Unfortunately, the upward movement was on the average volume, therefore we can’t allocate any new volume level or zone. However, we still should give advantage to long positions. We can enter the market after the continuation of the sharp growth, but the movement must be supported by the large volume, which will be a more reliable signal for entering the market. A stop loss should be placed below the beginning of this rise. A potential of the deal is around 110 pips.

USD/CAD

The Canadian dollar is still located above the level of support 1.3234, where the large volume. Hence, long positions are still in priority. However, we can enter the market after a resumption of the sharp rise, supported by 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 around 120 points.

AUD/USD

The Australian dollar sank and broke down the support level, which is a great bearish signal. Nevertheless, the further fall was stopped by the new support level 0.7058, so that we can open sales only after its breakdown. The movement must be keen and 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 80 points.

XAU/USD

Nothing has changed here as the price is still located within the local range between 2 strong levels. The first one is the support 1297.00, the second one is the resistance 1325.80.

Thus, our previous scenario remains actual: we can open new positions only after the sure exit of the price from the range. The breakout movement must be supported by the large volume, which will insure us against a false breakout.

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

The sentiment: this indicator fully confirms all our trading scenarios today, which is a great additional signal for us. As with gold, we need to wait for the sure and sharp exit of the price from the range and only after that we can open new positions.