Daily Technical Forex Report 17.01.2019

EUR/USD

EUR/USD continued falling yesterday, but the movement was smooth and on the small volume, so that we can’t point out any new volume level or zone. Besides it, the pair is still located within the local consolidation between the support 1.1267 and the resistance 1.1585, in which the large volume is concentrated.

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

Thus, the best solution with the Euro is just to wait for the confident and sharp exit of the price from the range and 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 price from the range.

GBP/USD

GBP/USD is trading near the level of resistance/local maximum 1.2925. Given the recent sharp rise supported by the large volume, we should 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 must be 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 more than 100 points.

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

USD/JPY

USD/JPY goes on trading inside the local consolidation, which contains the large volume. The boundaries on the range are the level of support 107.28 and the level of resistance 109.46. Hence, our previous scenario remains actual: we can open new deals only after the sure exit of the pair from the local consolidation. The breakout move must be abrupt and supported by the large volume, which will be a more reliable signal for entering the market.

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

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

USD/CAD

USD/CAD is also located within the local consolidation between 2 strong volume levels. They are the support level 1.3183 and the resistance level 1.3322. Therefore, we can consider new positions only after the confident and abrupt exit of the price from the range. Moreover, the movement must be supported by the large volume, which will be a more accurate signal for entering the market.

While the price is locked in the range, we’d better skip this instrument from our trading plan.

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

AUD/USD

AUD/USD corrected downwards, but the fall was smooth and on the small volume, so that we can’t allocate any new volume level or zone. Furthermore, the pair is trading in the local consolidation between the level of support 0.7117 and the resistance 0.7235. Given all these factors, we can regard new deals only after the sure and keen exit of the price from the range. The breakout movement must be supported by the large volume, in order to insure us against a fake breakout.

If the price continues trading in the consolidation, we’d better stay out of the market.

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

XAU/USD

Gold is also locked in the local consolidation between the level of support 1280.00 and the level of resistance 1297.00. We also should note that the large volume is concentrated within this range.

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

Considering all these factors, we can regard new positions only after the confident and abrupt exit of the price from the range. Moreover, the movement must be supported by the large volume, which will be a more precise and reliable 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 after the sharp exit of the instrument from the range.

The mood of retail traders (trading against the "crowd"): this indicator confirms scenario of opening long positions with GBP/USD, that is a good additional signal. As with other instruments, we should wait for the exit of prices from local ranges and only after that we can open new deals.

A potentially good deal: GBP/USD

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

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