Daily Technical Forex Forecast 20.06.2019


EUR/USD

The Euro demonstrated an abrupt growth supported by the large volume yesterday. However, the pair is still located inside the local range between the level of support 1.1185 and the resistance 1.1338.

Therefore, we can consider new positions only after the sharp and confident exit of the price from it. Moreover, the breakout movement must be supported by the large volume, which will be a more precise and secure signal for entering the market.

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

GBP/USD

The same situation with the Pound. The price showed a sharp growth on the increased volume, but is still located inside the local range between 2 strong volume levels. They are the support 1.2520 and the resistance 1.2796.

Thus, we can regard new positions only after the confident exit of the price from it. Furthermore, the breakout movement must be keen and supported by the large volume, which will insure us against a false breakout.

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

USD/JPY

The price fell down sharply and broke down the previous level of support, which is a great bearish signal. Moreover, the drop was supported by the large volume and the new level of resistance was created, it’s 108.13. Considering all these factors, we should prefer a scenario of opening short positions. We can enter the market after a smooth upward correction, in order to get an acceptable entry point. A stop loss should be placed above the level of resistance. A potential of the deal is more than 100 pips.

USD/CAD

The Canadian dollar showed a sharp drop supported by the large volume and broke down the previous support level, which is a strong bearish signal. Moreover, we need to allocate the new resistance level 1.3295 – 1.3316. Considering all these factors, we should prefer a scenario of opening short positions. We can enter the market after a smooth upward correction, in order to get a better entry point. A stop loss should be placed above the resistance level. A potential of the deal is more than 100 points.

AUD/USD

The Australian dollar continued rising and now is trading inside the local range between 2 strong volume levels. They are the support level 0.6845 and the resistance level 0.7017. Hence, we can reckon new trading scenarios only after the sharp and confident exit of the price from the range. The movement must be supported by the large volume, which will insure us against a fake breakout.

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

 

XAU/USD

The price grew up strongly and broke out the previous level of resistance. Moreover, the movement was supported by the large volume, which is a great bullish signal. On the other hand, we can open long positions only after the confident breakout of the new level of resistance 1386.20.

The surge must be confident, rapid and supported by the large volume, which will be a more reliable and 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 150 pips.

The sentiment: this technical indicator totally affirms all our trading scenarios today, which is a great additional signal for us (trading against the “crowd”). As with other instruments, we can open new positions only after the exit of prices from local consolidations.