Daily Technical Forex Report 14.01.2019

EUR/USD

EUR/USD corrected down on Friday. The drop was sharp and on the large volume. On the other hand, the pair is located within the local consolidation between 2 strong levels. They are the support 1.1267 and the resistance 1.1585.  

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

Therefore, the best solution with the Euro is just to wait for the confident and abrupt exit of the price from the range. The movement must be supported by the large volume, which will insure us against a fake breakout.

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 local consolidation.

GBP/USD

GBP/USD demonstrated an abrupt growth, supported by the large volume and broke out the previous level of resistance yesterday. This is a great bullish signal. Therefore, we 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 smooth downward correction of the pair, in order to get a more profitable entry point. A stop loss should be placed below the Friday’s breakout volume bar. A potential of the deal is more than 100 points.

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

USD/JPY

USD/JPY continues trading within the local consolidation between 2 strong volume levels. The first one is the level of support 107.28 and the second one is the level of resistance 109.46. Thus, we can consider new deals only after the sure and keen exit of the price from the local range. The breakout movement must be supported by the large volume, which will be a more secure and precise signal for entering the market.

Until that, 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 corrected upwards on the increased volume. The pair is located inside the local consolidation between the support level 1.3183 and the resistance level 1.3322. Given all these factors, we can regard new positions only after the confident and abrupt exit of the price from the local range. The movement must be supported by the large volume, which will insure us against a fake breakout and will be a more reliable signal for entering the market.

While the pair is trading inside the range, we should stay out of the market.

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

AUD/USD

AUD/USD adjusted down on the increased volume on Friday. Nevertheless, given the presence of the local uptrend and strong volume level of support, we still should give preference to long positions. But we can enter the market only after a stoppage of the fall and a resumption of the sharp rise. The movement must be supported by the large volume. A stop loss should be placed below the beginning of this surge. A potential of the deal is more than 80 points.

The bottom line: long positions are still in priority.

XAU/USD

Gold goes on trading the local consolidation between 2 strong volume levels. They are the support level 1280.00 and the resistance level 1297.00. Besides it, we need to point out that the large volume is concentrated inside this range.

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

Hence, the best solution with gold is just to wait for the keen exit of the price from the local consolidation. Moreover, the movement must be supported by the large volume, which will be a more reliable and accurate signal for entering the market.

While the price is located within the range, we’d better omit this instrument from our trading plan.

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

The mood of retail traders (trading against the "crowd"): this indicator fully affirms all scenarios with GBP/USD and AUD/USD, which is a nice additional signal. As with other instruments, we should wait for the exit of pairs from local ranges and only after that we can open new positions.

The best deals: GBP/USD, AUD/USD

Stay out of the market: EUR/USD, USD/JPY, USD/CAD, XAU/USD

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