Daily Technical Forex Forecast 17.10.2017


EUR/USD

The price corrected downwards on Monday and now is trading in the middle between the resistance 1.1870 and the support 1.1680 – 1.1699. The fall of the pair was quite smooth and on average volume, so we can’t consider it as a reversal signal, but on the other hand, until the Euro breaks out one of these volume levels we can’t trade this currency pair.

volume euro

So that, we should wait for the price to come out from the range and only after that we can deliberate any new position here.

GBP/USD

Yesterday the Pound corrected down and tested the support level of 1.3225 – 1.3254, in which fairly large volume is concentrated. The fall of the price was quite sharp, but on medium volume, so there is simply no way to single out new volume level.
Thus, before the breakdown of the support we should give preference to long positions for this currency pair.

volume gbp tfxi

Purchases can be opened after the price rises from the support level. Ideally, it should be a strong bullish impulse. A stop loss should be placed under the support level with a small margin. The growth potential is about 150 points.
buy gbp tfxi
If the price breaks through this level, then it’s worth to be out of the market. Short positions can be considered only after the breakdown of the level of 1.3137.

USD/JPY

The Yen had tested the support level 111.73 – 111.86, but failed to break it down and rebounded up strongly. The growth was sharp, but on average volume, so it does not cancel our previous scenario of opening short positions after a breakdown of the support.

The move should be abrupt and supported by large volume. A stop loss should be placed above the breakdown volume bar. A potential of the deal is more than 100-110 pips.

sell jpy

USD/CAD

Despite the strong growth of the price yesterday, the price is still locked in the consolidation between two strong volume levels: the support 1.2404 – 1.2428 and the resistance 1.2566 – 1.2580. That’s why our previous scenario remains the same, we need to wait for the confident exit of the price from the range. The move should be supported by increased/large volume.

volume cad

AUD/USD

AUD/USD showed a smooth fall of the price yesterday, but the move was on small volume, so we can’t consider it as a reversal signal. But on the other hand, we can open long positions only after a strong and sharp breakout of the resistance level 0.7893. The move should be supported by large volume. A potential of the deal is 70 pips.

If the price continues falling on small volume, we should stay out of the market.

buy aud

XAU/USD

Gold fell down sharply and broke out the previous level of support, after which the price totally absorbed the previous bullish impulse. We should note that the fall of the price was on increased volume, but it was spread throughout the movement, so we can’t point out any specific volume level or zone.

volume gold

On the other hand, there is a local uptrend for gold, so that it is difficult to predict the further move of the price. Anyway, we should wait for the appearance of large volume and creation of new volume levels that can be used in trading gold.

The sentiment: this indicator confirms our deals for GBP/USD, USD/JPY and AUD/USD. For all other instruments the situation is unclear as they are trading in consolidations.

sentiment

The bottom line: the market corrected on Monday which makes forecasting harder, but still we have a couple of good scenarios, such as long positions for the Pound and short positions for the Yen.