Daily Technical Forex Report 10.01.2019

EUR/USD

EUR/USD showed a sharp growth and broke out the previous level of resistance, which is a great bullish signal. Moreover, the movement was supported by the large volume, that increases its importance. Hence, we should consider exceptionally long positions now.

(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 of the price, in order to get a more profitable entry point. A stop loss should be placed below the beginning of the breakout movement. A potential of the deal is more than 100 points.

The bottom line: long positions after a smooth correction of the pair.

GBP/USD

GBP/USD also demonstrated an abrupt rise and now is testing the level of resistance/the upper limit of the local consolidation 1.2797. The growth was on the large volume, so that we can consider a scenario of its breakout, which will allow us to open long positions.

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

The surge of the pair 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 below the breakout volume bar. A potential of the deal is around 130 points.

The bottom line: purchases after the breakout of the resistance.

USD/JPY

USD/JPY carries on trading within the local consolidation between the level of support 107.28 and the level of resistance 109.46. Therefore, our previous scenario remains relevant: we can open new positions only after the keen and confident exit of the price from the range. The movement must be supported by the large volume, which will be a more precise and secure signal for entering the market.

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

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

USD/CAD

USD/CAD continued falling, but after the formation of the new support 1.3183, corrected upwards. Nevertheless, there is a strong local downtrend + the growth was smooth and on the small volume, so that we still should give preference to sales. We can enter the market after a resumption of the drop and a sharp breakdown of the new support level. The move must be supported by the large volume. 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 sure breakdown of the support.

AUD/USD

AUD/USD went on growing, moreover, the move was on the increased volume. We also should point out the level of support 0.7117, which contains the large volume. Hence, we should give preference to long positions. We can enter the market after a smooth downward correction of the price, in order to get a better entry point. A stop loss should be placed below the support. A potential of the deal is more than 80 points.

The bottom line: long positions should be in priority.

XAU/USD

Gold resumed its growth yesterday. Furthermore, the upward movement was sharp and supported by the large volume, which is a strong bullish signal. So now we should regard a scenario of opening long positions with this instrument.

(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 correction of the price down, in order to obtain a more profitable entry point. A stop loss should be placed below the beginning of the sharp rise. A potential of the deal is more than 150 points.

The bottom line: long positions after a smooth correction of the pair down.

The mood of retail traders (trading against the "crowd"): this indicator fully affirms all our trading scenarios today, which is a great additional signal. As with USD/JPY, we should wait for the exit of the price from the local range and only after that we can open new positions.

The best deals: EUR/USD, USD/CAD, AUD/USD, XAU/USD

A potentially good deal: GBP/USD

Stay out of the market: USD/JPY

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