Daily Technical Forex Forecast 21.02.2019


EUR/USD

The Euro tested the level of resistance 1.1357, but failed to break it out. Nevertheless, it is still located near this mark, hence, we can and should regard a scenario of tis breakout, which will be a great bullish signal.

The surge 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 100 points.

GBP/USD

The Pound corrected downwards yesterday, but is still located above the level of support 1.2985 – 1.2998, which contains the large volume. Besides it, the fall was on the small volume. Hence, we still should give advantage to long positions.

We can enter the market after the resumption of an abrupt rise supported by the increased or large volume, which will be a more secure signal for entering the market. A stop loss should be placed below the level of support. A potential of the deal is more than 120 pips.

USD/JPY

Nothing has changed here as the price is still located a little bit below the level of resistance/upper boundary of the local range 111.06. Thus, our previous scenario remains relevant: we can consider a breakout of this level, which will allow us to open long positions. The movement must be keen and supported by the large volume, which will insure us against a fake breakout. A stop loss should be placed below the breakout volume bar. A potential of the deal is around 110 pips.

USD/CAD

The Canadian dollar is still located 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. Hence, we can open new positions only after the sure and abrupt 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 price is locked within the range, we’d better stay out of the market.

AUD/USD

The Australian dollar tested the level of resistance, but the showed a huge drop on the large volume. Now the price is trading inside the local consolidation between the level of support 0.7058 and the level of resistance 0.7204. Thus, the best decision with this pair is just to wait for the sharp exit of the price from the range and only after that we can consider new trading scenarios. Furthermore, the movement must be supported by the large volume, which will be a more precise signal for entering the market.

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

XAU/USD

Gold adjusted downward after the formation of the new resistance level 1345.40 yesterday. Nevertheless, the price is trading near this mark now, and given the recent sharp growth on the large volume, we can consider a scenario of its breakdown. This will be a great bullish signal and will allow us to open long positions with gold.

The breakout movement must be swift, sharp and on the large volume, which will be a more accurate and strong signal to enter the market. A stop loss should be placed slightly below the breakout volume bar. The potential of the deal is more than 150 points.

The sentiment: this technical indicator fully affirms all our trading scenarios today, which is a great additional signal (trading against the “crowd”). As with USD/CAD and AUD/USD, we can open new positions only after the sure exit of prices from local consolidations.