Daily Technical Forex Forecast 04.10.2018

EUR/USD

The Euro demonstrated an abrupt fall and broke down the previous support level yesterday, which is an excellent bearish signal. Unfortunately, the breakdown move was on the small volume, so at the moment it is risky to enter the market. However, we should give advantage to short positions.

We can enter the market after the resumption of the drop, but the movement must be on the large volume, which will be a more precise signal to enter the market. A stop loss should be placed just above the beginning of the fall. The potential of the deal is about 100 points.

GBP/USD

The Pound fell down significantly yesterday, but the sink was also on the small volume, so we can’t point out any new level or zone. However, considering the presence of the local downtrend and a strong resistance level 1.3069 – 1.3094, we must give advantage to short positions.

We can enter the market after the resumption of a keen fall, but the move must be supported by the large volume, which will be a more precise and secure signal to enter the market. A stop loss should be placed just above the beginning of this decline. The potential of the deal is about 120 points.

USD/JPY

As predicted, the uptrend with the Yen continued and the pair broke out the previous resistance level/local maximum yesterday, which is an excellent bullish signal. The breakout movement was rapid and on the large volume, which only enhances its value. Considering all these factors, we should give preference to precisely long positions with this instrument. It is worth entering the market after a small and smooth price correction down to get a better entry point. A stop loss must be placed just below the start of the breakout movement. The potential of the deal is more than 100 points.

USD/CAD

The contrary situation with the Canadian dollar. The pair went on correcting up, but the rise was on the small volume, so we can’t point out any new level or zone. Besides it, the price is currently inside the local consolidation between the support 1.2790 and the resistance 1.3012. Therefore, we can regard new positions only after a sharp exit of the price from the local consolidation. The movement should be supported by the large volume, which will insure us against a false breakout.

AUD/USD

The Australian dollar demonstrated an abrupt drop yesterday and is now testing the support level/lower boundary of the local consolidation 0.7100. Therefore, we can regard a scenario of the breakdown of this mark, which will be an excellent bearish signal. The breakout move should be rapid and on the large volume, which will insure us against a fake breakdown. A stop loss should be placed slightly above the breakout volume bar. The potential of the deal is more than 100 points.

XAU/USD

Gold corrected down and is now trading in the middle of the local consolidation between 2 strong volume levels. They are the support 1182.40 and the resistance 1210.00.

Hence, we can regard new trading scenarios only after a sure and sharp breakout of one of these levels and the exit of the price from the range. The movement should be supported by the large volume, which will be a more reliable signal to enter the market.

The sentiment: this indicator totally affirms all our trading scenarios, which is a good additional signal. With the Canadian dollar and gold, then we can enter the market only after a sharp exit of prices from local ranges.

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