Daily Technical Forex Report 15.01.2019

EUR/USD

Nothing has changed with EUR/USD as the price is still trading within the local consolidation between 2 strong levels. They are the level of support 1.1267 and the level of resistance 1.1585. Besides it, the large volume is concentrated inside the local 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 and sharp exit of the price from the local consolidation. Moreover, the breakout 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 located inside the range, we’d better stay out of the market.

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

GBP/USD

GBP/USD corrected downwards after the creation of the new level of resistance 1.2925. The large volume is concentrated within this mark. Nevertheless, given the local uptrend and the fact, that the price is trading near the resistance, we can consider a scenario of its breakout, which will be a great bullish signal.

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

The surge of the price must be abrupt and supported by the large volume, which will be a more secure signal for entering the market. A stop loss should be placed below the breakout volume bar. A potential of the deal is more than 100 points.

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

USD/JPY

USD/JPY goes on trading within the local consolidation between the level of support 107.28 and the level of resistance 109.46. Given that the large volume is concentrated inside this range, the best solution with the Yen is just to wait for the sure and keen exit of the price from the range. Only after that we can consider new positions. The movement must be supported by the large volume, which will insure us against a fake breakout.

While the price is trading inside the range, we’d better stay out of the market.

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

USD/CAD

The same situation with USD/CAD as the pair is still located inside the local consolidation between the support 1.3183 and the resistance 1.3322. Therefore, we can regard new trading scenarios only after the confident and abrupt exit of the price from this range. Furthermore, the movement must be supported by the large volume, which will be a more precise signal for entering the market.

Until that, we’d better stay out of the market.

The bottom line: new deal after the confident exit of the price from the range.

AUD/USD

AUD/USD didn’t show any significant movement yesterday and is still trading near the local maximum. Given the presence of the strong local uptrend, we still should give a little preference to long positions. We can enter the market after a resumption of the keen rise, but the movement 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 the growth. A potential of the deal is more than 80 points.

The bottom line: long positions are still in priority.

XAU/USD

Gold continues trading inside the local range between 2 strong volume levels. The first one is the level of support 1280.00 and the second one is the level of resistance 1297.00. We should also allocate that the large volume accumulation is concentrated inside the consolidation.

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

Given all these factors, we can regard new positions with this instrument only after the confident and keen exit of the price from the range. Moreover, the movement must be supported by the large volume, which will insure us against a fake breakout.

While the pair is located inside the consolidation, we’d better omit it from our trading plan.

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

The mood of retail traders (trading against the "crowd"): the sentiment of the market totally confirms all scenarios with GBP/USD and AUD/USD, which is a nice additional signal. As with other currency pairs, we should wait for the exit of prices from local consolidations 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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