Daily Technical Forex Forecast 14.02.2019


EUR/USD

The Euro resumed falling. Moreover, the drop was abrupt and now the pair is testing the level of support/lower boundary of the local range 1.1267. Hence, our previous scenario remains relevant: we can consider a scenario of its breakout, which will allow us to open short positions.

The fall must be keen and supported by the large volume, which will insure us against a false breakout and will be a more precise signal for entering the market. A stop loss should be located above the breakdown volume bar. A potential of the deal is more than 100 points.

GBP/USD

The Pound showed a sharp and rapid fall yesterday. Currently, the pair is testing the support level/lower limit of the local range 1.2848. Taking into account all these factors, we can consider a scenario of the breakdown of this mark, which will be an excellent bearish signal and allow us to open long positions with this instrument.

The breakout movement must be confident and supported by 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. The potential of the deal is more than 110 points.

USD/JPY

The Yen went on rising, but unfortunately, the movement was on the small volume, so that we can’t allocate any new volume level or zone. However, given the presence of the strong local uptrend, we should consider exceptionally long positions. We can enter the market after a continuation of this move, but the surge must be keen and supported by the large volume, which will be a more reliable signal for entering the market. A stop loss should be located below the beginning of this rise. A potential of the deal is more than 100 points.

USD/CAD

The Canadian dollar continues trading inside the local consolidation between 2 strong levels. The first one is the support level 1.3075, the second one is the resistance level 1.3323. Hence, we can open new positions only after the breakout of one of these levels and the exit of the price from the consolidation. The movement must be supported by the large volume, which will insure us against a fake breakout.

While the pair is locked within the range, we’d better stay out of the market.

AUD/USD

The Australian dollar corrected upwards yesterday, but the move was smooth and on the small volume, so we can’t consider long positions. Besides it, the price is located near the level of support 0.7058. Therefore, we can reckon a scenario of its breakdown, which will be a great bearish signal. The drop should be sharp and supported by the large volume. A stop loss should be located above the breakdown volume bar. A potential of the deal is more than 80 points.

XAU/USD

Nothing has changed with gold. Yes, the price fell down sharply, but is still locked inside the local range between 2 strong volume levels. They are the support 1297.00 and the resistance 1325.80.

Therefore, the best solution with this instrument is just to wait for the range and only after that we can open new positions. Furthermore, the breakout movement must be supported by the large volume, which will be a more accurate and reliable signal for entering the market.

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

The sentiment: this technical indicator confirms all our trading scenarios today, that is a nice additional signal for us (trading against a “crowd”). As with USD/CAD and gold, we should wait for the exit of prices from ranges and only after that we can open new positions.