Daily Technical Forex Forecast 09.10.2018

EUR/USD

At the moment, the Euro is inside the local consolidation just below the resistance level 1.1525 – 1.1539. The large volume is concentrated at this mark, so before its breakout we can’t open purchases. Moreover, given the presence of the local downtrend, we still should give preference to short positions with this currency pair.

We can enter the market after the resumption of a sharp and rapid fall of the pair on the large volume, which will be an excellent bearish signal. A stop loss should be placed slightly above the resistance level. The potential of the deal is about 100 points.

GBP/USD

The Pound showed mixed signals: dropped down sharply, then grew up again. Both moves were on the small volume, so we can’t point out any new level or zone. Besides it, the price is located in the local consolidation between the support level 1.2925 and the resistance level 1.3188.

Hence, we can regard new trading scenarios only after a sure and keen exit of the price from the range. The breakout move must be supported by the large volume, which will be a more reliable signal to enter the market.

USD/JPY

The Yen demonstrated an abrupt fall, but the move was on the small volume, so we can’t point out the new level or zone. Moreover, the price is locked within the local consolidation between the support 112.45 and the resistance 114.20. Given these factors, we can consider new positions only after a sharp exit of the price from the range. The breakout move must be sure and on the large volume, which will insure us against a fake breakout and will be a more precise signal to enter the market.

USD/CAD

The Canadian dollar tested the resistance level 1.3012, but falied to break it out. However, the price adjusted down on the small volume and is near this mark now. Therefore, we can regard a scenario of the breakout of this mark, which will be a great bullish signal. The breakout move must be abrupt and supported by the large volume. A stop loss should be placed slightly below the breakout volume bar. The potential of the deal is more than 100 points.

AUD/USD

The Australian dollar corrrected upwards and is testing the resistance level 0.7084 now. The rise of the pair was smooth and on the small volume, and given the recent keen drop, we still should give advantage to short positions. We can enter the market after the resumption of the sharp fall of the price on the large volume. A stop loss should be placed slightly above the resistance level. The potential of the deal is more than 100 points.

XAU/USD

Gold tested the support level 1182.40, but could not break it down. The price is currently trading inside the local consolidation between this mark and the resistance level 1210.00.

Hence, we can enter the market only after the brekaout of one of these levels and a sure exit of the price from the range. The breakout movement should be swift and on the large volume, which will insure us against a fake breakdown and will be a more secure and precise signal to enter the market.

The sentiment: this indicator totally affirms our trading scenarios with EUR/USD, USD/CAD and AUD/USD, which is a good additional signal. With all other instruments, we should wait for a sure exit of prices from local ranges and only after that we can enter the market.

Hits: 2