Daily Technical Forex Forecast 12.06.2019


EUR/USD

The price resumed growing and now is testing the level of resistance/local maximum 1.1338. Given that the growth was supported by the increased volume and was on the large positive delta, we can reckon a scenario of its breakout, which will allow us to open long positions.

The growth of the price must be keen and supported by the large volume, which will be a more reliable signal for entering the market. A stop loss should be located below the breakout volume bar. A potential of the deal is more than 100 points.

GBP/USD

The Pound is still locked inside the local range between the support 1.2568 and the resistance 1.2796. The large volume is concentrated within this consolidation, thus, we can open new positions only after the sharp exit of the price from it.

Moreover, the breakout movement must be abrupt and supported by the large volume, which will insure us against a fake breakout.

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

USD/JPY

The similar situation here. The price is trading within the local range between 2 strong volume levels. The first one is the support 107.83, the second one is the resistance 108.85. Hence, our previous scenario remains relevant: we can consider new positions only after the confident and sharp exit of the price from this consolidation. Furthermore, the movement must be supported by the large volume, which will insure us against a fake breakout.

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

USD/CAD

The Canadian dollar tested the resistance level, but could not break it out and then resumed falling. Now the price is trading below this mark, thus, our previous scenario is still actual: we should give a sligth advantage to short positions. We can enter the market after the continuation of the drop, but the move should be supported by the large increased or large volume. A stop loss should be placed above the resistance with a little margin. A potential of the deal is more than 100 pips.

AUD/USD

The Australian dollar continues trading within the local consolidation between 2 strong volume levels. They are the support level 0.6903 and the resistance 0.7017. Thus, we can open new deals only after the sharp breakout of one of these levels and the confident exit of the price from the range. Furthermore, the movement must be rapid and supported by the large volume, which will be a more accurate signal for entering the market.

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

XAU/USD

The price is trading in the middle of the local range between the support 1316.60 and the resistance 1343.60. Thus, our previous scenario remains actual: we can reckon new trading scenario only after the exit of the price from the range.

Moreover, the breakout movement must be rapid, confident and supported by the large volume, which will be a more secure signal for entering the market.

Until that, while the price is located within this range, we’d better skip this instrument from our trading plan.

The sentiment: this technical indicator affirms our trading scenarios with EUR/USD and USD/CAD (trading against the “crowd”), which is a great additional signal for us. As with other instruments, we can use the sentiment only after sharp exit of prices from local consolidations.