Daily Technical Forex Forecast 10.10.2017


EUR/USD

The Euro continued growing up on Monday, but the move was very smooth and wasn’t supported by significant volume, so that we are unable to point out any new volume levels or zones for this currency pair. The only relevant level is the support 1.1680 – 1.1699.

volume euro

Moreover, the price is locked in the consolidation, where large volume is accumulated. That’s why we need to wait for a sure exit of the price from this range in order to be able to consider new scenarios.

While the pair is trading in the consolidation, we should stay out of the market.

GBP/USD

GBP/USD showed a smooth growth on Monday and broke through one of the resistance levels. It is worth noting that the upward movement was on small volume, so it cannot be regarded as a market reversal. In addition, the second resistance level 1.3184 – 1.3204 is still actual. It contains fairly large volume and was tested yesterday. Given the presence of a strong local downtrend, it is necessary to give preference to short positions.

volume gbp tfxi

Sales can be opened in case of the test of the resistance 1.3184 – 1.3204 and a sharp rebound of the price down on increased volume. A stop loss should be placed a little above the resistance level. The goal is a local minimum.

If the price breaks through the resistance level, then it’s worth to be out of the market, since there are several large volume accumulations at the top of the chart and we can open long positions only after their breakout.

sell gbp tfxi

USD/JPY

The Yen is still trading in the consolidation below the resistance level 113.20 – 113.42, where large volume is concentrated. So that our previous scenario remains the same – we should wait for the confident and sharp exit of the price from the range and only after that we can consider opening new deals for this currency pair.

Until that, it is better to stay out of the market.

trade jpy

USD/CAD

The pair is trading in the little consolidation below the resistance 1.2566 – 1.2580. The price fell down during the Asian session, but the move was on small volume, so we can’t regard it as a bearish signal.

That’s why we still should give preference to long positions, but we can enter the market only after an abrupt breakout of the resistance on large volume. A stop loss should be placed below the breakout volume bar. A potential of the growth is 100 pips.

As for short positions, we can deliberate them only after a breakdown of the support 1.2404 – 1.2428.

buy cad

AUD/USD

AUD/USD is trading a little bit above the level of support 0.7744 at the moment. The price showed a little growth, but it was on small volume + given the presence of the local downtrend, we should consider short positions for this currency pair. We can enter the market after a breakdown of the support on large volume, so it will be a more accurate signal. A stop loss should be placed above the breakdown volume bar. A potential of the deal is 70 pips.

As for long positions, we can consider them only after a breakout of the resistance 0.7868.

sell aud

XAU/USD

Gold continued growing on Monday as the price went up quite confidently. Unfortunately, the movement was on small volume, so we can’t highlight any fresh volume level or zone at the moment.

volume gold

This fact makes trading gold a pretty tough task, because we don’t have a good place for a stop loss + there is a downtrend for this instrument, so now it is very risky to open long positions.

The best decision will be staying out of the market and waiting for the appearance of large volume on the market and the growth of the price after it. This will be a more accurate signal for entering the market.

As for short positions, we should consider them only after the breakdown of the support 1261.10 – 1262.80.

The sentiment: this indicator shows equal value for the Euro, the Pound and gold. For the Yen long positions should in priority, while for the USD/CAD and AUD/USD – short positions.

sentiment

The bottom line: yesterday volume on the market was very small, so that Monday was very calm day, that’s why almost all our previous scenarios remain the same. GBP/USD is in priority today.