Daily Technical Forex Report 30.01.2019

EUR/USD

EUR/USD is still trading inside the consolidation between the level of support 1.1267 and the level of resistance 1.1585. Besides it, we should point out that the large volume is concentrated within this consolidation

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

Given all these factors, we should wait for the exit of the price from the consolidation and only after that we can open new positions. The breakout movement must be supported by the large volume, which will be a more precise 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 price from the range.

GBP/USD

GBP/USD corrected down yesterday, but the move was stopped by the formation of the new level of support 1.3069 – 1.3102. This mark contains the large volume. Given the presence of the local uptrend, we still should give a slight 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 resumption of the sharp rise, but the movement must be supported by the large volume, which will be a more reliable signal for entering the market. A stop loss should be placed below the new support. A potential of the deal is more than 120 points.

The bottom line: long positions after the resumption of the growth.

USD/JPY

USD/JPY continues trading near the level of support/lower limit of the consolidation 109.15. Therefore, we can consider a scenario of its breakdown, which will allow us to open short positions. The drop must be keen and supported by the large volume, that 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 100 points.

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

USD/CAD

Nothing has changed with USD/CAD as the price is still located inside the local consolidation between 2 strong levels. They are the support level 1.3185 and the resistance level 1.3367. Hence, we can enter the market only after the sure and abrupt exit of the price from the range. The breakout movement must be supported by the large volume, which will be a more accurate signal for entering the market. Until that, we’d better stay out of the market.

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

AUD/USD

The similar situation with AUD/USD as the price is still trading within the local consolidation between the level of support 0.7084 and the level of resistance 0.7235. Thus, the best solution with this instrument is just to wait for the confident and keen exit of the pair from the range and only after that we can open new positions. The movement must be supported by the large volume, which will be a more precise 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 price from the consolidation.

XAU/USD

XAU/USD went on rising yesterday. The movement was sharp, but on the small volume, therefore, we can’t point out any new volume level or zone. Hence, we should give preference to long positions, but only after the appearance of the additional signal.

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

Such signal is a continuation of the surge, but the movement must be supported by the large volume, which will be a more reliable 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 150 points.

The bottom line: long positions are still in priority.

The mood of retail traders (trading against the "crowd"): this indicator affirms 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 consolidation and only after that we can consider new positions. 

The best deals: GBP/USD, XAU/USD

Potentially good deals: USD/JPY

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

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