Daily Technical Forex Report 03.01.2019

EUR/USD

EUR/USD demonstrated a huge slump on the large volume, which is a great bearish signal. On the other hand, the price is still located within the local consolidation between the support level 1.1267 and the resistance level 1.1463.

(this is a futures chart, so the price here differs from the Forex, but it moves totally the same)

Therefore, we can consider new positions only after the confident exit of the price from the local consolidation. The movement must be supported by the large volume, which will insure us against a fake breakout.

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

The bottom line: waiting for the exit of the price from the range.

GBP/USD

GBP/USD also indicated an abrupt sink on the large volume and tested the support level 1.2539. The price is currently trading near this mark, hence, we can consider short positions only after its confident and sharp breakdown.

(this is a futures chart, so the price here differs from the Forex, but it moves totally the same)

The drop of the pair must be supported by the large volume, which will be a more reliable and 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 100 points.

The bottom line: short positions after the breakdown of the support.

USD/JPY

USD/JPY also fell down sharply, which is a good bearish signal, but the volume was medium, so we can’t allocate any new level or zone. Nevertheless, we should give preference to short positions. We can enter the market after a continuation of the drop, but the move must be supported by the large volume, which will be a more precise signal for entering the market. A stop loss should be placed above this sink. A potential of the deal is more than 100 points.

The bottom line: short positions should be in priority.

USD/CAD

USD/CAD resumed its rise and now is testing the level of resistance/upper limit of the local consolidation 1.3652. Thus, we can and should consider a scenario of its breakout, which will be a great bullish signal. The surge must be supported by the large volume, which will be a more reliable signal for entering the market. A stop loss should be placed below the breakout volume bar. A potential of the deal is more than 100 points.

The bottom line: long positions after the sure breakout of the resistance.

AUD/USD

AUD/USD endured falling, moreover, the movement was supported by the increased volume, which is a good bearish signal. Hence, we should give advantage to short positions with this pair. We can enter the market after a smooth upward correction of the price, in order to get an acceptable entry point. A stop loss should be placed above the beginning of the keen dip. A potential of the deal is more than 90 points.

The bottom line: sales after a smooth upward correction of the price.

XAU/USD

The uptrend with gold is going on, besides it, the rise of the pair was supported by the large volume, which is a great bullish signal. Given all these factors, we should consider exceptionally long positions.

(this is a futures chart, so the price here differs from the Forex, but it moves totally the same)

We can enter the market after a smooth downward correction, in order to get a more profitable entry point. A stop loss should be placed below the local minimum. A potential of the deal is more than 150 points.

The bottom line: long positions should be in priority.

The mood of retail traders (trading against the "crowd"): this indicator fully confirms all our trading scenarios today, which is a great additional signal. The situation with the Euro is uncertain, therefore, we should wait for the exit of the pair from local range and only after that we can consider new positions. 

Potentially good deals: GBP/USD, USD/JPY, USD/CAD, AUD/USD, XAU/USD

Stay out of the market: EUR/USD

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