Daily Technical Forex Forecast 12.04.2019


EUR/USD

The Euro tested the support level 1.1235 – 1.1248, after which it showed a significant and sharp increase of the price. It is worth noting that the large volume is concentrated within this mark, therefore, prior to its breakdown, we should give preference to long positions with this instrument.

Purchases can be opened after a small and smooth price correction down to get a better entry point to the market.  A stop loss should be placed just below the support level. The potential of the deal is more than 100 points.

GBP/USD

The Pound continues trading inside the local consolidation between 2 strong volume levels. They are the support 1.2985 – 1.2998 and the resistance 1.3335. We should also point out that the large volume is concentrated within this range.

Given all these factors we can open new positions only after the confident and keen 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.

USD/JPY

The Yen resumed rising and is currently trading near the level of resistance/local maximum 112.00. Given that the surge was sharp and on the increased volume, we can consider a scenario of the breakout of this mark, which will be a great bullish signal. The growth must be abrupt 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 more than 100 points.

USD/CAD

The Canadian dollar goes on trading in the middle of the local consolidation between the level of support 1.3248 and the level of resistance 1.3463. Therefore, we can open new positions only after the sharp and sure exit of the price from the consolidation. Furthermore, the move must be supported by the large volume, which will be a more secure and precise signal for entering the market.

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

AUD/USD

The Australian dollar tested the level of resistance 0.7165, but failed to break it out and fell down. On the other hand, the price is trading near this mark, so that we still can regard a scenario of its breakout, which will allow us to open long positions. The surge of the pair must be keen and supported by the large volume, which will be a more accurate signal for entering the market. A stop loss should be placed below the breakout volume bar. A potential of the deal is more than 80 points.

If the price is located within the range, we’d better stay out of the market.

XAU/USD

Gold demonstrated an abrupt drop supported by the large volume. On the other hand, the price is located within the local consolidation between 2 strong volume levels. They are the support level 1282.00 and the resistance level 1309.80.

Therefore, we can open new positions only after the keen and confident exit of the price from the local consolidation. Moreover, the breakout movement must be supported by the large volume, which will be a more reliable and accurate signal for entering the market.

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

The sentiment: this technical indicator totally confirms our scenarios with EUR/USD and USD/JPY, which is a good additional signal (trading against the “crowd”). As with AUD/USD, we should be very careful as the sentiment does not affirm our scenario. As with other pairs and gold, we must wait for the exit of prices from local ranges and only after that we can open new positions.

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