Daily Technical Forex Forecast 19.04.2019


EUR/USD

The Euro demonstrated an abrupt drop supported by the huge volume and broke down the previous level of support, which is a great bearish signal. Also, we need to point out the new level of resistance, it’s 1.1266 – 1.1276. This level contains the large volume, which mean that big players opened their positions in this area.

Given all these factors, we should prefer a scenario of opening short positions. We can enter the market after a smooth upward correction of the price, in order to get a more profitable entry point. A stop loss should be placed above the level of resistance. A potential of the deal is more than 100 points.

GBP/USD

The Pound fell down sharply and now is testing the level of support/lower boundary of the local range 1.2985 – 1.2998. Thus, we can and should regard a scenario of its breakdown, which will be a great bearish signal.

The drop of the price must be confident, keen and supported by the large volume, which will be a more accurate signal for entering the market. A stop loss should be placed above the breakdown volume bar. A potential of the deal is more than 120 points.

USD/JPY

Nothing has changed here as the price is still trading and testing the level of resistance 112.00. Therefore, we can and should regard a scenario of its breakout, which will be a great bullish signal. The breakout movement must be abrupt and supported by the large volume, which will insure us against a fake breakout. A stop loss should be placed under the breakout volume bar. A potential of the deal is more than 100 points.

USD/CAD

The Canadian dollar is still trading in the middle of the local consolidation between the support level 1.3248 and the resistance level 1.3463. Therefore, we can open new positions only after the sharp and supported by the large volume, which will be a more reliable and accurate signal for entering the market.

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

AUD/USD

The Australian dollar continued correcting downwards yesterday. The move was sharp and supported by the increased volume, however, the pair is locked within the local consolidation between 2 strong volume levels. They are the support 0.7056 and the resistance 0.7202. Thus, new positions can be open 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 secure signal for entering the market.

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

XAU/USD

The similar situation here as the price continued falling and now is testing the level of support 1273.90. Hence, our previous scenario remains actual: we can open short positions, but after the confident breakdown of this mark.

Moreover, the movement must be sharp and supported by the large volume, which will be a more reliable signal for entering the market. A stop loss should be placed above the breakdown volume bar. A potential of the deal is more than 150 points.

The sentiment: this technical indicator totally confirms all our trading scenarios with EUR/USD, GBP/USD, USD/JPY, XAU/USD (as we trade against the “crowd”), which is a great additional signal. As with USD/CAD and AUD/USD, we can open new positions only after the sharp exit of prices from local consolidations.