Daily Technical Forex Forecast 07.11.2017


EUR/USD

The price tested the local minimum 1.1578 (which is also the support now), but failed to break it down, rebounded up and is trading in the local consolidation near this mark at the moment. We should note that the growth of the pair was on small volume, so we should consider it as a reversal signal.

volume euro

Given the strong fall last Friday we still should give advantage to short positions, but we need to wait for the sure breakdown of the support to be able to enter the market. The move should be sharp and supported by increased volume. A stop loss must be placed above the breakdown volume bar. A potential of the deal is more than 120 pips.

sell euro

GBP/USD

After the test of the support level 1.3061 – 1.3090 on Friday, the price showed a significant growth yesterday. The move was abrupt, but on small volume. Moreover, the entire situation remained the same: the price is locked in the global consolidation.

That’s why we can’t trade this currency pair at the moment. The only possible scenario is to wait for the confident exit of the price from the range. Until that it is better to stay out of the market.

volume gbp

USD/JPY

The Yen has tested the resistance level 114.37, but failed to break it out and fell down strongly yesterday. Now the price is testing the support 113.62 – 113.76 where large volume is concentrated. So in general, the pair is located in the local range between these two levels. In such case the best decision will be waiting for the price to come out from the consolidation. The breakout move must be sharp and on increased/large volume which will be a stronger signal for entering the market.

trade jpy

USD/CAD

USD/CAD has broken down the support level, but unfortunately, the move was on small volume, so it is too risky to trade it. We need to get a stronger signal, such as a resumption of the fall on increased/large volume. Perfectly, if the price corrects up and them resumes its fall. A stop loss should be placed above the level 1.2782. A potential of the deal is up to 200 pips.

sell cad

AUD/USD

The price corrected up and is still locked in the consolidation between two strong volume levels 0.7634 and 0.7720. It is necessary to point out that large volume is concentrated in this range, so the best decision will be waiting for the exit of the pair from it. After that we can consider new deals for this currency pair.

trade aud

XAU/USD

On Monday, the price of gold showed significant growth, tested the resistance level of 1282.70 – 1284.60, after which it rebounded down. It is worth noting that the pair is still trading in the global consolidation (the lower limit – support 1264.40 – 1266.00), in which fairly large volume is concentrated.

volume gold tfxi

Given all of the above factors, the best decision will be to wait for the price to come out from the consolidation. The breakout movement must be sharp and on increased volume, which will be a more accurate and strong signal for entering the market.
While the price is trading in this range, it’s better to be out of the market.

trade gold tfxi

The sentiment: our deals for the Euro and the Canadian dollar are confirmed by this indicator. As for other instruments, it can’t be used as they are located in ranges.

sentiment

The bottom line: almost all instruments corrected on Monday, so that we need to wait for new volume impulses (breakouts of consolidations) to be able to consider new deals.