Daily Technical Forex Forecast 20.02.2019


EUR/USD

The Euro demonstrated an abrupt growth supported by the large volume and now is trading near the new level of resistance 1.1357. The move was supported by the increased volume. Hence, we can consider long positions only after the sure and keen breakout of this mark.

The surge must be supported by the large volume, which will be a more secure signal for entering the market. A stop loss should be located below the breakout volume bar. A potential of the deal is around 100 points.

GBP/USD

The Pound showed a significant and sharp rise on the large volume and broke out the previous resistance level, which is an excellent bullish signal. Moreover, it is necessary to point out the new level of support 1.2985 – 1.2998. The large volume is concentrated within this mark. Considering all these factors, we should consider exceptionally long positions.

Purchases can be opened after a small and smooth price correction down, in order to obtain a better entry point to the market. A stop loss should be placed slightly below the new level of support. The potential of the deal is more than 120 points.

USD/JPY

The Yen also demonstrated an abrupt rise and now is trading near the level of resistance/upper limit of the local range 111.06. Thus, we can consider a scenario of its breakout, which will be a great bullish signal. 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 breakout volume bar. A potential of the deal is around 110 points.

USD/CAD

The Canadian dollar fell down yesterday, but the price is still located within the local consolidation between 2 strong volume levels. They are the support 1.3075 and the resistance 1.3323. Hence, we can open new positions only after the sharp and confident 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 signal for entering the market.

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

AUD/USD

The Australian dollar showed a sharp rise on the large volume and is trading nigh the level of resistance 0.7182. Thus, we can and should regard a scenario of its breakout, which will be a great bullish signal. The surge must be sure and keen + supported by the large volume, that will be a more secure signal for entering the market. A stop loss should be placed below the breakout volume bar. A potential of the deal is around 80 points.

XAU/USD

Gold indicated a sharp growth supported by the huge volume. Besides it, we need to point out the new volume level of support, which was created yesterday. It’s 1331.60. So considering all these factors, we must give preference to long positions.

We can enter the market after a smooth downward correction, in order to get a more profitable entry point. A stop loss should be placed below the new level of support. A potential of the deal is more than 150 points.

The sentiment: this technical indicator fully confirms all our trading scenarios today, which is a great additional signal (trading against a “crowd”). As with the Canadian dollar, we can consider new positions only after the sure exit of the price from the local consolidation.