Daily Technical Forex Forecast 14.12.2017

EUR/USD

The euro showed a rapid price growth on large volume yesterday. It is worth highlighting the new volume level, which was formed during this movement – 1.1784 – 1.1793. Given these factors, we can assume that this movement is a market reversal, i.e. a local downtrend is likely over. Thus, now it is worth considering the scenario of opening long positions for this currency pair.

Purchases can be opened after a small and smooth correction of the price to the level of support. Movement should be on small volume. This is necessary in order to obtain a more advantageous point for entering the market. A stop loss should be placed under a bullish volume impulse. The potential of the deal is 100-110 points.

GBP/USD

The Pound also showed an abrupt growth of the price, but volume was not large, it was increased. Besides it, the new support level was created, it is 1.3370 – 1.3381. This level contains large volume, which only strengthens its value. Given all these facts, we can consider the scenario of opening long positions.

We can open purchases after a smooth downward correction of the price in order to obtain a more profitable entry point. A stop loss should be placed below the strong bullish impulse. The target is the level 1.3544.

USD/JPY

USD/JPY finally broke down the support level and fell sharply. The move was supported by increased volume and the new resistance was created, it is the level 112.72 – 112.86. The price is testing this mark at the moment and if it rebound from it down we may consider short positions. A stop loss should be placed above the strong bearish impulse. A potential of the deal is up to 120 points.

USD/CAD

The situation for the Canadian dollar is very difficult for trading as the pair is locked in the local consolidation a little bit below the resistance level 1.2906. Yes, the price fell down rapidly yesterday, but volume was evenly spread throughout the movement, so we can’t point out any specific volume level. That’s why the best decision is to skip this currency pair from our trading plan today.

AUD/USD

Great situation for trading for AUD/USD as the price broke out the resistance level/upper limit of the local range. Moreover, the move was sharp and confident + supported by large volume. Also we must point out the new support level 0.7614 – 0.7626, where large volume is concentrated. Given all the facts above, we should give preference to long positions. We can enter the market after a smooth correction down. A stop loss should be placed below the strong volume impulse. A potential of the deal is more than 70 points.

XAU/USD

Despite the sharp growth of gold, the pair is locked in the local consolidation 1236.80 – 1269.70. Moreover, the upward move was om average volume yesterday, so we can’t point out any new volume levels, which makes considering new trading scenarios even more difficult. That’s why the best decision will be just to wait for the exit of the price from the range and only after that we can deliberate new scenarios here.

The sentiment: the mood of the market confirms our scenario for the Euro, the Pound and the Australian dollar, so these pairs should be in priority today.

The bottom line: there are a lot of fundamental events today, so that we should be extremely careful and watch for the reactions of pairs on the news.

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