Daily Technical Forex Report 23.01.2019

EUR/USD

Nothing has changed with EUR/USD as the price is located within the local consolidation between 2 strong levels. They are the support 1.1267 and the resistance 1.1585. Besides it, we should point out the large volume accumulation inside this range.

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

Thus, we can consider new trading scenarios only after the confident and abrupt exit of the price from the local consolidation. 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 locked inside the range, we’d better stay out of the market.

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

GBP/USD

GBP/USD showed an abrupt surge and now is trading near the level of resistance/upper boundary of the local consolidation 1.2995. Therefore, we can and should regard 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 rise of the pair must be sure and sharp + supported by the large volume, which will insure us against a fake breakout and will be a more precise signal for entering the market. A stop loss should be placed below the breakout volume bar. A potential of the deal is more than 120 points.

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

USD/JPY

USD/JPY demonstrated a sharp growth on the increased volume yesterday. We also should point out the new support level 109.15, which contains the large volume. Hence, we should give preference to long positions. 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 new support. A potential of the deal is more than 100 points.

The bottom line: long positions are still in priority.

USD/CAD

USD/CAD grew up and break out the resistance, which is a good bullish signal. Nevertheless, the price is correcting downwards at the moment, hence, we can open long positions only after a stoppage of this fall and a resumption of the keen rise, supported by the large volume. It will be a more reliable signal for entering the market. A stop loss should be located below this move. A potential of the deal is around 120 points.

The bottom line: long positions should be in priority.

AUD/USD

AUD/USD tested the level of support 0.7117, but could not break it down. However, the price is trading nigh this mark, so that we still can consider a scenario of its breakdown, which will allow us to open short positions. The drop 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 above the breakdown volume bar. A potential of the deal is more than 80 points.

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

XAU/USD

XAU/USD resumed rising and is trading inside the local consolidation between the support 1277.00 and the resistance 1297.00. Moreover, the large volume accumulation is concentraAted inside this range.

(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 only after the confident and keen exit of the price from the range. The breakout 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: waiting for the exit of the pair from the range.

The mood of retail traders (trading against the "crowd"): the sentiment affirms all our trading scenario, which is a good additional signal. The situation with USD/JPY is equal, therefore, we should be more careful. As with other instruments, we should wait for the exit of pairs from local consolidations and only then we can open new deals.  

Potentially good deals: GBP/USD, USD/JPY, USD/CAD, AUD/USD

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

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