Daily Technical Forex Report 28.01.2019

EUR/USD

EUR/USD indicated a sharp surge of the price on the large volume on Friday. However, the pair is still located inside the local range between the support level 1.1267 and the resistance level 1.1585.

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

Hence, we can open new positions only after a confident and rapid exit of the price from the local range. The breakout move must be supported by the large volume, which will be a more accurate signal to enter the market.

While the pair is locked in 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 went on rising. Moreover, the move was on the large volume, so we can state that the uptrend with this currency pair is going on. Given these factors, we should consider exceptionally 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 small and smooth correction of the price down to get a more profitable entry point into the market. A stop loss should be placed slightly below the local minimum. The  potential of the deal is more than 120 points.

The bottom line: long positions should be in priority.

USD/JPY

USD/JPY corrected down after the test of the resistance level 109.92. The pair is currently trading in the middle of the local consolidation between this mark and the support level 109.15. Therefore, we can enter the market only after a steady exit from the local consolidation. The breakout movement should be supported by the large volume, which will be a more accurate signal for us.

If the price continues trading in the consolidation, we'd better omit this pair from our trading plan.

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

USD/CAD

After the test of the resistance level, USD/CAD demonstrated an abrupt sink on the large volume and is trading near the support level 1.3185. Hence, we can regard a scenario of the breakdown of this mark, which will consent us to open short positions. The downward move must be supported by the large volume, which will be a more accurate signal to enter the market. A stop loss should be placed slightly above the breakout volume bar. The potential of the deal is more than 100 points.

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

AUD/USD

AUD/USD grew up strongly on Friday. However, the price carries on trading inside  the local consolidation between the support 0.7084 and the resistance 0.7235. Given these factors, we should wait for a confident exit of the price from the range and only after that we can consider new trading scenarios. The breakout movement must be swift and on the large volume, which will be a more reliable signal to enter the market.

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

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

XAU/USD

XAU/USD demonstrated a huge growth supported by the very large volume and broke out the previous resistance level. Furthermore, the new support level 1290.50 - 1292.00 was formed. Considering all these facts, we should regard only 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 small and smooth price correction down to get a better entry point to the market. A stop loss should be placed just below the support level. The potential of the deal is more than 150 points.

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

The mood of retail traders (trading against the "crowd"): this mood of the market totally affirms our scenarios with GBP/USD, USD/CAD and XAU/USD, which is an excellent additional signal. As with other instruments, we should wait for a confident exit of prices from local consolidations, only after that we can open new positions.

The best deals: GBP/USD, XAU/USD

A potentially good deal: USD/CAD

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

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