Daily Technical Forex Forecast 20.10.2017


EUR/USD

Nothing has changed for the Euro as the pair is trading in the consolidation. The price moves on average volume, so that we can’t point out any new volume levels or zones. Thus, the only possible trading scenario for this instrument is waiting for the exit of the price from the range which will be a good signal for considering new deals. The breakout move should be sharp and supported by increased/large volume. It will be a more accurate signal.

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

volume euro

GBP/USD

After another test of the previous support level of 1.3163, GBP/USD still managed to break this mark and now the price continues falling down. It should be noted that the fall of the pair was rather sharp, but on small volume, so it is impossible to single out a specific new volume level. Despite this, this signal is a good bearish pointer. Moreover, there is a large accumulation of volume at the top of the chart, which exerts additional pressure on the price. Given all these factors, it is worth giving preference to short positions on this instrument.

volume gbp tfxi

Sales should be opened after the appearance of large volume in the market and a rapid fall of the price after that. This scenario gives us a good place for the stop loss – just above the beginning of a┬ávolume fall of the price. The target is a local minimum.

sell gbp tfxi

USD/JPY

The price showed a significant growth during the Asian session and now is testing the upper limit of the consolidation/level of resistance 113.20 – 113.42. Given such a strong bullish impulse, it is necessary to point out the scenario of the breakout of this level.

If the price breaks the resistance out sharply and on large volume, it will be a great bullish signal, so we will be able to open long positions. A stop loss should be placed below the breakout volume bar. A potential of the deal is 110+pips.

buy jpy

USD/CAD

USD/CAD is still trading in the consolidation, so the only way of how we can consider new deals here is just to wait for the confident exit of the price from the range on large volume. Until that it is better to stay out of the market.

trade cad

AUD/USD

The pair fell down sharply during the Asian session and is trading in the local consolidation a little bit below the resistance level 0.7893. That’s why we should wait for the exit of the pair from this range and after that consider opening new deals here.

trade aud

XAU/USD

Gold grew up strongly yesterday, but resumed its fall today during the Asian session. We should note that the upward move was on large volume, so we can consider opening short positions only after the price to breakdown the yesterday’s minimum.

volume gold

The breakdown movement should be abrupt and supported by large volume. A stop loss should be placed above the breakdown volume bar. The target is the support level 1261.10 – 1262.80.

As for long positions, we may consider them only after the breakout of the level 1305.00.

sell gold

The sentiment: this indicator confirms our scenarios for GBP/USD, USD/JPY and gold. For all other pairs it is a bit useless, as they are in ranges.

sentiment

The bottom line: there are a couple of potentially good deals in the market right now, especially the Pound and the Yen. As for other instruments, we should extremely careful and wait for good confirming signals.

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