Daily Technical Forex Report 24.01.2019

EUR/USD

Nothing has changed with EUR/USD as the pair is located within the local consolidation between the level of support 1.1267 and the level of resistance 1.1585. 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)

Taking into account all these factors, we can enter the market only after the exit of the price from the local consolidation. Moreover, the breakout movement must be supported by the large volume, which will be a more precise and secure signal for entering the market.

While the price 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.

GBP/USD

GBP/USD showed a sharp growth and broke out the previous resistance level, which is a great bullish signal. We also should point out the new support level 1.2975. Given all these factors, 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 only after a smooth downward correction of the price, in order to get a more profitable entry point. A stop loss should be placed below the support level. A potential of the deal is more than 120 points.

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

USD/JPY

USD/JPY corrected down after the creation of the new level of resistance 109.92. Besides it, the previous level of support 109.15 is still actual, so now the pair is located within the local range between them. Hence, we can enter the market only after the confident exit of the price from the consolidation. The movement must be supported by the large volume, which will be a more 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 only after the sure exit of the price from the range.

USD/CAD

USD/CAD continued rising on the increased volume, but the movement was stopped by the new resistance level 1.3367. Hence, we can open long positions only after the sharp breakout of this mark. Furthermore, the surge must be supported by the large volume, which will insure us against a fake breakout. 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 sharp breakout of the resistance.

AUD/USD

AUD/USD fell down and broke down the support level, which is a nice bearish signal. Unfortunately, the movement was on the small volume, so that we shouldn’t open sales now. We can enter the market after a continuation of the drop, but the move must be supported by the large volume, which will be a more reliable signal for entering the market. A stop loss should be placed above the beginning of this sink. A potential of the deal is more than 80 points.

The bottom line: short positions should be in priority.

XAU/USD

XAU/USD goes on trading in the local consolidation between the level of support 1277.00 and the level of resistance 1297.00. We also should allocate that the large volume accumulation is concentrated within the range.

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

Therefore, we can open new positions only after the exit of the price from the local range. Furthermore, the breakout movement must be supported by the large volume, which will be a more accurate and reliable 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.

The mood of retail traders (trading against the "crowd"): this indicator confirms all our trading scenarios today, which is a great additional signal for us. As with other currency pairs, we must wait for the exit of prices from local ranges and only then we can open new positions. 

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

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

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