Daily Technical Forex Report 29.01.2019

EUR/USD

EUR/USD continues trading inside the local consolidation between the level of support 1.1267 and the level of resistance 1.1585. We need to point out 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)

Therefore, the best solution with the Euro is just to wait for the sure and sharp exit of the price from this consolidation. The breakout movement must be supported by the large volume, which will be a more accurate signal for entering the market.

While the pair is 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 corrected downwards yesterday, but the fall was smooth and on the small volume, so that we can’t consider it as a reversal signal. Moreover, there is a strong uptrend with the Pound, thus we still 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 after a stoppage of the drop and a resumption of the sharp rise, supported by the large volume, which will be a more precise signal for entering the market. A stop loss should be placed below the beginning of this move. A potential of the deal is more than 120 points.

The bottom line: long positions are still in priority.

USD/JPY

USD/JPY tested the level of support/lower limit of the local range 109.15, but could not break it down.  On the other hand, the price is still located near it, so we can consider a scenario of its breakout, which will be a great bearish signal. The sink must be supported by the large volume, which will insure us against a fake breakdown. A stop loss should be placed above the breakdown volume bar. A potential of the deal is more than 100 points.

The bottom line: short positions after the breakdown of the support.

USD/CAD

USD/CAD grew up yesterday and is currently trading in the middle of the local consolidation between the support level 1.3185 and the resistance level 1.3367. Hence, we can open new positions only after the sure exit of the price from the local range. 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 sharp exit of the pair from the range.

AUD/USD

AUD/USD is also locked inside the local consolidation between 2 strong volume levels. They are the support level 0.7084 and the resistance level 0.7235. Thus, new positions can be opened only after the breakout of one of these levels and the confident exit of the price from the range. The movement must be supported by the large volume, which will insure us against a fake breakout.

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

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

XAU/USD

XAU/USD went on rising yesterday. Besides it, we need to allocate the new support level 1297.00. It contains the large volume and has been already tested, which only enhances its strength. Considering 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 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 new support level. A potential of the deal is more than 150 points.

The bottom line: long positions should be in priority.

The mood of retail traders (trading against the "crowd"): the sentiment 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 the price from the local range and only after that we can consider new deals. 

The best deals: GBP/USD, XAU/USD

Potentially good deals: USD/JPY

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

Legal: RForex Ltd abide all rules & regulations of international business company, under the company act of Saint vicent & Grenadines. Company provides trading services activities and brokerage, training, managed account services in currencies, commodities, indexes, CFDs and leveraged financial instruments.

Risk Warning: Trading leveraged products such as Forex and CFDs may not be suitable for all investors as they carry a high degree of risk to your capital. Trading such products is risky and you may lose all of your investment. Please read the full Risk Disclosure.