Daily Technical Forex Report 09.01.2019

EUR/USD

EUR/USD continues trading near the level of resistance/the upper boundary of the local consolidation 1.1476. Therefore, our previous scenario remains the same: we can consider a breakout of this mark, which will allow us to open long positions with the Euro.

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

The rise of the pair must be confident, sharp 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 around 120 points.

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

GBP/USD

GBP/USD corrected downwards yesterday and is currently located in the local consolidation between the level of support 1.2539 and the level of resistance 1.2797. The large volume accumulation is concentrated within this range.

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

Hence, we can consider new positions only after the confident breakout of one of these levels and the exit of the price from the consolidation. The movement must be supported by the large volume, which will be a more reliable and accurate signal for entering the market.

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

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

USD/JPY

USD/JPY remains locked within the local consolidation between 2 strong volume levels. The first one is the support 107.28, the second one is the resistance 109.46. Thus, our previous scenario is still actual: we can open new deals only after the sharp exit of the price from this range. The breakout movement must be supported by the large volume, which will be a more precise signal for entering the market.

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

The bottom line: new positions only after the exit of the price from the range.

USD/CAD

USD/CAD goes on falling, moreover, the move is supported by the large volume, which is a good bearish signal. We also should point out the new resistance level 1.3322. Given all these factors, we should regard exceptionally 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 resistance level. A potential of the deal is more than 100 points.

The bottom line: short positions after a smooth upward correction.

AUD/USD

AUD/USD carried on growing, besides it, the rise was on the increased volume and the new level of support 0.7117 was created. Therefore, we should give advantage to long positions with this currency pair. We can enter the market after a smooth correction of the price down, in order to get a better entry point. A stop loss should be placed below the new support. A potential of the deal is more than 80 points.

The bottom line: long positions should be in priority.

XAU/USD

Gold is still located above the level of support 1277.00, which contains the large volume. Furthermore, there is a strong uptrend with this instrument. Considering all these factors, we still should give preference to 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 resumption of the abrupt and keen growth, supported by the large volume, which will be a more secure signal for entering the market. A stop loss should be placed below the level of support. A potential of the deal is around 130 points.

If the price breaks down the support, we’d better stay out of the market.

The bottom line: long positions are still in priority.

The mood of retail traders (trading against the "crowd"): the mood of the market confirms all our trading scenarios, which is a good additional signal. Only with AUD/USD the situation is unclear, so that we should be more careful. As with GBP/USD and USD/JPY, we should wait for the exit of the price from the consolidation and only after that we can open new positions.

The best deals: USD/CAD, AUD/USD

Potentially good deals: EUR/USD, XAU/USD

Stay out of the market: GBP/USD, USD/JPY

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