Daily Technical Forex Report 31.01.2019

EUR/USD

EUR/USD demonstrated an abrupt growth, which was supported by the large volume. Yes, the price is still located in the range, but this move is a great bullish signal. Hence, we can consider a short-term long positions with this pair.

(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 beginning of the sharp rise. Our first target is the level 1.1585.

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

GBP/USD

GBP/USD did not show any significant movements yesterday. Nevertheless, the pair is still located above the level of support 1.3069 – 1.3102, which contains the large volume. Hence, until its breakdown, 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 resumption of the sharp surge, but the growth must be confident and supported by the large volume, which will be a more reliable signal for entering the market. 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 resumption of the sharp surge.

USD/JPY

USD/JPY showed a sharp drop and broke down the previous level of support. Moreover, the movement was supported by the large volume, which is a great bearish signal. We also should point out the new resistance level 109.64 – 109.73. Given all these factors, we should consider exceptionally short positions. We can enter the market after a slight upward correction, in order to get a better entry point. A stop loss should be located above the resistance. A potential of the deal is more than 100 points.

The bottom line: short positions should be in priority.

USD/CAD

USD/CAD also indicated a sharp fall on the large volume, but the move was stopped by the new support level 1.3118. However, considering that the price is located near this mark and such keen drop, we should regard a scenario of its breakdown, which will allow us to open sales. The sink must be confident and 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 sure breakdown of the support.

AUD/USD

AUD/USD grew up strongly and on the large volume yesterday. The price is currently testing the new resistance level 0.7270. Hence, we can consider a scenario of its breakout, which will be a great signal for opening long positions. The rise must be keen and supported by the large volume. A stop loss should be placed below the breakout volume bar. A potential of the deal is around 130 points.

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

XAU/USD

XAU/USD also demonstrated a keen growth on the large volume. Unfortunately, the volume was evenly spread throughout the move, so we can’t allocate any new level or zone. Nevertheless, taking into account the presence of the strong uptrend, 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 beginning of the move. 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 of the market fully confirms all our trading scenarios, which is a great additional signal for us and encourage us to be more active today.

The best deals: EUR/USD, XAU/USD

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

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