Daily Technical Forex Forecast 19.02.2019


EUR/USD

Nothing has changed with the Euro as the price is still located near the level of support/lower boundary of the local range 1.1244. Given the presence of the strong local downtrend, we can consider a scenario of the breakdown of this mark, which will be allow us to open short positions.

The drop must be supported by the large volume, in order to insure us against a fake breakout. A stop loss should be placed above the breakdown volume bar. A potential of the deal is more than 100 points.

GBP/USD

The Pound is still located within the local range between 2 strong levels. The first one is the support 1.2773, the second one is the resistance 1.2990. Thus, our previous scenario remains relevant: we can consider new positions only after the exit of the price from the consolidation.

Furthermore, the breakout move must be keen and supported by the large volume, which will be a more precise and secure signal for entering the market.

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

USD/JPY

The same situation with the Yen as the price is trading within the local range between the resistance 111.06 and the support 109.35. Both levels contain the large volume, hence, we can open new positions only after the confident exit of the price from this range. Besides it, the movement must be abrupt and supported by the large volume, which will be a more reliable signal for entering the market.

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

USD/CAD

The Canadian dollar continues trading within the local consolidation between 2 strong volume levels. The first one is the level of support 1.3075, the second one is the level of resistance 1.3323. Therefore, we can open new positions only after the sharp and confdient exit of the price from the range. Moreover, the breakout movement must be supported by the large volume, which will be a more reliable signal for entering the market.

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

AUD/USD

The Australian dollar corrected downwards after the test of the previous resistance level. Now the pair is located within the local consolidation between the support 0.7058 and the resistance 0.7182. Hence, we can consider new trading scenarios only after the sure and keen exit of the price from the range. The breakout move must be supported by the large volume, which will be a more precise and secure signal for entering the market.

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

XAU/USD

Gold showed a sharp and significant growth. At the moment, the price is testing the resistance level/upper limit of the local range 1325.80. Thus, we can consider a scenario of the breakdown of this mark, which would be an excellent bullish 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, and also insure us against a false breakdown. A stop loss should be placed slightly below the breakout volume bar. A potential of the deal is more than 150 points.

The sentiment: this technical indicator confirms our scenarios with the Euro and gold, which is a good additional signal (trading against the “crowd”). As with other instruments, we can open new positions only after the exit of prices from local consolidations.

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