Daily Technical Forex Forecast 22.11.2017

EUR/USD

The Euro had tested the support level/lower boundary of the range – 1.1728, but could not break it and returned trading back in the local consolidation. In addition, it is worth noting the upper boundary of this range – 1.1816.

As we can see from the volume chart below, there is a large accumulation of volume in this consolidation, which allows us to assume that large players are gaining positions within this range. Therefore, the best option is to wait for the breakdown of one of the boundaries of consolidation and then enter the market.

The breakout movement must be sharp and on an increased/large volume, which will protect us from false breakdown and will be a more accurate and strong signal for the opening of new positions for this currency pair.

GBP/USD

There are any new significant movements for this currency pair and the price is still located in the global consolidation between two volume levels: the support 1.3061 – 1.3090 and the resistance 1.3316. Also we must note the large volume accumulation within this range, so everything remained the same and our scenario too.

We can consider new positions for GBP/USD only after a sharp and sure breakout of one of the boundaries of the range on large volume. It will insure us from fake breakouts and will be a stronger signal for entering the market.

USD/JPY

After the strong upward correction, the price resumed falling and is located a little bit above the support level 111.73 – 111.86, where large volume is accumulated. So we may open short positions only after its confident breakdown supported by large volume. A stop loss should be placed above the breakdown volume bar. A potential of the deal is 120+ points.

USD/CAD

After the test of the resistance the pair fell down and is still locked in the consolidation 1.2669 – 1.2821. Also we need to note that pretty large volume is concentrated within this range, so the best decision will be waiting for the exit of the price from it which will allow us to consider new deals.

The move must be abrupt and supported by large volume.

AUD/USD

The price showed a strong growth yesterday, but the move was on average volume + the price resumed falling after that. That’s why we should consider it as a reversal signal and still give preference to short positions.

We can enter the market after a confident breakdown of the local minimum on increased volume. A stop loss should be placed above the breakdown volume bar. A potential of the deal is 60-70 points.

XAU/USD

Nothing has changed for this instrument as the price is still located in the middle of the consolidation. We should point out the boundaries of this range, they are: the support 1264.40 – 1266.00 and the resistance 1292.50. Given that large volume is concentrated in this consolidation, the best decision will be waiting for the breakout of one of the limits of the range.

As usual, the movement must be sharp and confident + supported by large volume, which will be a more accurate and stronger signal for entering the market. While the price is locked within the consolidation, we should stay out of the market.

The sentiment: this indicator confirms our scenario for the AUD/USD. For the Yen it shows that we should give preference to long positions, but if the price breaks down the support, we must consider exceptionally short positions.

The bottom line: USD/JPY is in priority today, for all other instruments we need to get a strong additional signal (breakout of ranges) to be able to trade them.

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