Daily Technical Forex Forecast 11.10.2018

EUR/USD

The Euro demonstrated a keen growth on the increased volume and broke out the previous resistance level. We also should point out the new support level 1.1505 – 1.1516. Considering all these factors, we should give advantage to long positions.

We can enter the market after a small and smooth correction of the price downwards, in order to get a better entry point. A stop loss must be locaated just below the support level. The potential of the deal is about 110 points.

GBP/USD

Yesterday, the Pound also showed an abrupt rise and broke out the previous resistance level, which is a great bullish signal. Besides it, the breakout move was supported by the increased volume, which only increases its importance. Hence, we should give advantage to purchases.

We can enter the market after a small and smooth adjustment of the price down, in order to obtain a more profitable entry point. A stop loss should be placed just below the start of the breakout movement. The potential of the deal is more than 130 points.

USD/JPY

Yesterday, the Yen showed a significant and sharp drop on the large volume and broke down the previous support level/lower limit of the local range, which is an excellent bearish signal. In addition, we need to allocate a new volume resistance level 112.76 – 112.89. Considering all these factors, we should regard short positions. We can open sales after a small and smooth price correction upwards, in order to get a more profitable entry point into the market. A stop loss should be placed slightly above the resistance level. The potential of the deal is more than 100 points.

USD/CAD

The Canadian dollar carried on rising and broke out the previous resistance level, which is a good bullish signal. The move was supported by the large volume, which only strengthens its importance. Therefore, we should consider exceptionally long positions. We should enter the market after a small adjustment of the price down to obtain a better entry point. A stop loss should be placed below the breakout volume bar. The potential of the deal is more than 100 points.

AUD/USD

The Australian dollar demonstrated a sharp sink and tested the support level 0.7058. At the moment the pair is located near this mark, so we can regard a scenario of its breakdown, which will be an excellent bearish signal. The move should be keen and on the large volume, which will be a more precise and secure signal to enter the market. 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 up and now is trading in the local consolidation between 2 strong levels. They are the support 1182.40 and the resistance 1210.00. We also should point out that the large volume is accumulated within range.

Hence, we can open new positions only after the sure exit of the pari from the consolidation. The breakout movement must be abrupt and supported by the large volume, which will insure us against a fake breakout and will be a more precise signal for opening new deals.

The sentiment: this indicator affirms all of our trading scenarios, which is a great additional signal. The only exception is EUR/USD, for which the situation is 50/50, so with this pair we should be more careful. As with gold, it is necessary to give advantage to sales (according to the sentiment), but it is possible to enter the market only after a sure exit of the price from the range.

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