Daily Technical Forex Forecast 08.11.2017


EUR/USD

Euro tested and broke through the support level/local low at 1.1578 yesterday, but could not lock lower and returned trading just above this mark. It should be noted that the movement was on small volume, so it does not play a big role in the further trading of this currency pair.

Therefore, our scenario remains the same – short positions on the euro after a sure breakdown of the level of 1.1578.

volume euro tfxi

The breakout movement must be sharp and on large volume, which will be a more accurate and strong signal for entering the market. A stop loss should be placed just above the breakdown volume bar. The potential of the deal is more than 120 points.

sell euro tfxi

GBP/USD

Nothing has changed for the Pound as the price is still locked in the consolidation between two levels: the support 1.3061 – 1.3090 and the resistance 1.3316. Also we need to point out the presence of huge volume accumulation in this range.

volume gbp

Given all these factors, we should consider new deals only after a confident exit of the price from the range. The move must be sharp and supported by large volume (a must condition).

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

USD/JPY

The price grew up, then fell down, but in general everything remained the same: it is located in the consolidation between two levels: the resistance 114.37 and the support 113.62 – 113.76. Moreover, large volume is concentrated in this range, so that the best decision will be waiting for the price to come out from the range.

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

trade jpy

USD/CAD

The price grew up quite sharply yesterday, but the move was on small volume, so we should not consider it as a reversal signal. That’s why our previous scenario remains the same: short positions are in priority. We can enter the market after a breakdown of the local minimum. A stop loss should be placed above the breakdown bar. A potential of the deal is up to 200 points.

sell cad

AUD/USD

The pair tested the support but failed to break it down and rebounded up. Now the price is trading in the consolidation 0.7634 – 0.7720. Given the presence of the large volume accumulation within this range, we should trade this currency pair only after the exit of the price from it. The movement must be sharp and on increased/large volume, which will be a stronger signal for entering the market.

trade aud

XAU/USD

Gold is trading in the middle of its range between two strong volume levels: the support 1264.40 – 1266.00 and the resistance 1282.70 – 1284.60. As can be seen from the volume chart, large volume is located in this consolidation.

volume gold

Given all the facts above, the best decision will be waiting for the price to breakout one of the boundaries of the range and only after that we can consider new deals here. The move must be abrupt and supported by large volume.

While the pair is located in the range, we should stay out of the market.

The sentiment: unfortunately, this indicator can’t be used at the moment as almost all currency pairs are in consolidations. Only short positions for the Euro are confirmed.

sentiment

The bottom line: given that almost all instruments are located in ranges, we should be extremely careful and wait for new volume impulses and exits of pairs from their consolidations.