Daily Technical Forex Forecast 22.02.2019


EUR/USD

After the test of the level of resistance 1.1357, the Euro corrected downwards, but is still located near this level, therefore, we still can consider a scenario of its breakout, which will be a great signal for opening long positions.

The surge 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 100 points.

GBP/USD

The Pound tested the new level of resistance 1.3089, but failed to break it down and then corrected downwards. Now the price is located in the middle of the local range between this level and the previous level of support 1.2985 – 1.2998.

Therefore, the best solution with this instrument is just to wait for the breakout of one of these levels and the sharp exit of the price from the range and only after that we can open new positions. Besides it, the movement must be supported by the large volume, which will be a more accurate signal for entering the market.

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

USD/JPY

The Yen is trading in the local consolidation a little bit below the level of resistance/upper boundary of the range 111.06. Thus, our previous scenario remains relevant: we can regard a breakout of this level, which will allow us to open long positions. The breakout movement must be abrupt and supported by the large volume. A stop loss should be placed below the breakout volume bar. A potential of the deal is around 110 points.

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

USD/CAD

Nothing has changed with the Canadian dollar as the price still 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. 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 same situation with the Australian dollar as 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 continued its price correction down yesterday. The fall was sharp and on the large volume. It is also worth noting that the pair is currently within the local range between 2 strong volume levels. They are the support 1303.20 and the resistance 1345.40.

Taking into account all these factors, we can consider new trading scenarios only after the breakout of one of these levels and the rapid exit of the price from the consolidation. The breakout movement should be supported by the large volume, which will be a more accurate and strong signal to enter the market.

While the pair is trading within the range, it is better to stay out of the market.

The sentiment: this indicator totally affirms our scenarios with the Euro and Yen, which is a great additional signal. As with other currency pairs and gold, we can open new positions only after the sure exit of prices from local ranges.

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