Daily Technical Forex Report 12.11.2018

EUR/USD

EUR/USD continued falling and now is trading a little bit above the level of support/lower boundary of the local consolidation 1.1304. Given that the drop was sharp, we can cogitate a scenario of its breakdown, which will be a good bearish signal.

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

The sink of the price must be keen and supported by the large volume, which will insure us against a fake breakdown and will be a more precise 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 pips.

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

GBP/USD

GBP/USD also demonstrated an abrupt drop and now is testing the level of support/lower limit of the local consolidation 1.2964. Therefore, we can and should regard a scenario of its breakdown, which will be a good signal for opening short positions.

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

The fall of the pair must be sharp and supported by the large volume, which will insure us against a fake breakdown and will be a more accurate signal for entering the market. A stop loss should be placed above the breakdown volume bar. Our first target is the level of support 1.2860.

The bottom line: sales after the confident breakdown of the support.

USD/JPY

USD/JPY corrected down on Friday, but the drop was smooth and on the small volume, so we can’t regard it as a reversal signal. Moreover, considering the presence of the uptrend, we should give preference to long positions.

We can enter the market after the resumption of the rise, but the movement must be supported by the large volume, which will be a more secure signal for entering the market. A stop loss should be located below this move. A potential of the deal is around 80 points.

The bottom line: long positions after the resumption of the sharp growth.

USD/CAD

USD/CAD went on rising, furthermore, the move was keen and supported by the large volume, which is a good bullish signal. We also should point out the new support level 1.3185. Given all these factors, we should give preference to long positions.

We can enter the market after the resumption of the sharp growth. A stop loss should be placed below the new level of support. A potential of the deal is more than 100 points.

The bottom line: long positions should be in priority.

AUD/USD

AUD/USD carries on trading within the local consolidation between the level of the support 0.7170 and the level of resistance 0.7296. Thus, we can consider new trading scenarios only after the sure exit of the price from the range. The breakout move must be keen and supported by the large volume, which will be a more reliable and accurate signal for entering the market.

While the pair is located within this consolidation, we should stay out of the market.

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

XAU/USD

Gold showed a sharp sink and broke down the previous level of support. Moreover, the move was supported by the large volume, which is a great bearish signal. Hence, we should give advantage to short 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 upward correction of the price up, in order to get a more profitable entry point. A stop loss should be placed a little bit above the beginning of the keen sink. A potential of the deal is more than 150 points.

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

The mood of retail traders (trading against the "crowd"): this indicator fully confirms all our trading scenarios, which is a great additional signal. With the Australian dollar, it is necessary to wait for the sure exit of the price from the local range and only after that we can regard new deals.

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

Stay out of the market: AUD/USD

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