Daily Technical Forex Forecast 12.03.2019


EUR/USD

The Euro continued correcting upwards and now is testing the level of resistance 1.1256 – 1.1267. The surge was on the small volume. Besides it, this mark contains the large volume, therefore, we can consider 2 possible trading scenarios.

The first one is the breakout of this mark, which will be a good bullish signal. The movement must be supported by the large volume. A stop loss should be placed below the breakout volume bar. A potential of the deal is more than 100 points.

The second scenario is the test of this level and the sharp rebound of the price down on the large volume, which will allow us to open short positions. A stop loss should be placed above the test of the level of resistance. A potential of the deal is more than 100 points.

GBP/USD

After the test of the level of support 1.2985 – 1.2998, the Pound demonstrated an abrupt growth supported by the large volume and now is trading near the level of resistance 1.3304. Hence, we can consider a scenario of its breakout, which will allow us to open long positions.

The rise of the pair must be sharp and supported by the large volume, in order to insure us against a false breakout. A stop loss should be placed below the breakout volume bar. A potential of the deal is more than 120 points.

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

USD/JPY

Nothing has changed with the Yen. The price is still locked in the middle of the local range between the level of support 110.26 and the level of resistance 112.00. Thus, our previous scenario remains relevant: we can open new positions only after the confident exit of the price from the range. The breakout movement must be keen and supported by the large volume, which will insure us against a false breakout.

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

USD/CAD

The Canadian dollar is also located within the local consolidation between 2 strong volume levels. The first one is the support level 1.3375, the second one is the resistance level 1.3463. Thus, we can consider new trading scenarios only after the exit of the price from the range. The breakout movement must be abrupt and supported by the large volume, which will be a more secure and precise signal for entering the market.

Until that, we’d better omit this pair from our trading plan.

AUD/USD

The Australian dollar went on correcting upwards, but the growth was smooth and on the small volume, hence, we can’t regard long positions now. Given the presence of the local downtrend, we still should give preference to short positions. We can enter the market after a stoppage of the rise and a resumption of the keen fall on the large volume. A stop loss should be placed above the beginning of this move. A potential of the deal is more than 80 points.

If the price endures surging, we’d better stay out of the market.

XAU/USD

The price is trading in the local consolidation between 2 strong volume levels. They are the support 1282.00 and the resistance 1302.70 – 1304.20. Therefore, the best solution with gold is just to wait for the breakout of one of these levels and the exit of the price from the range and only after that we can open new positions.

The breakout movement should be keen, sure and supported by the large volume, which will be a more accurate signal for entering the market.

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

The sentiment: this technical indicator totally confirms our scenarios with GBP/USD and AUD/USD, 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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