Daily Technical Forex Report 11.01.2019

EUR/USD

EUR/USD corrected downwards yesterday, but the movement was on the small volume, so we can’t consider short positions at the moment. Moreover, given the recent sharp rise on the large volume, we still should prefer a scenario of opening 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 keen surge, but the move 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 beginning of this growth. A potential of the deal is more than 100 points.

The bottom line: long positions are still in priority.

GBP/USD

GBP/USD continues trading near the level of resistance/the upper limit of the local consolidation 1.2797. Thus, our previous scenario remains actual: we can consider a breakout of this mark, 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 breakout movement must be abrupt and supported by the large volume, which will be a more precise and secure 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: long positions after the confident breakout of the resistance.

USD/JPY

Nothing has changed with USD/JPY as the price is located within the local consolidation between the level of support 107.28 and the level of resistance 109.46. Therefore, we can regard new trading scenarios only after the sure and keen exit of the price from it. Furthermore, the movement must be supported by the large volume, which will insure us against a fake breakout.

While the price 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 resumed falling and now is trading near the level of support/local minimum 1.3183. Hence, we can consider a scenario of its breakdown, which will be a great bearish signal. The drop must be sharp and supported by the large volume, which will be a more 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.

AUD/USD

AUD/USD grew up yesterday, but the move was on the small volume, so we can’t point out any new volume level or zone. Anyway, we still should give preference to long positions due to the local uptrend and the strong support level 0.7117. 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 support level. A potential of the deal is more than 80 points.

The bottom line: long positions should be in priority.

XAU/USD

Gold corrected down, but has already resumed rising. Besides it, we need to allocated the new level of resistance/local maximum 1297.00. Thus, we can consider long positions only after the sure breakout of this mark.

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

The growth of the price must be 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 more than 150 points.

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

The mood of retail traders (trading against the "crowd"): the sentiment of the market totally confirms all our trading scenarios today, which is a nice 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: USD/CAD, AUD/USD, XAU/USD

A potentially good deal: EUR/USD, GBP/USD

Stay out of the market: USD/JPY

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