Daily Technical Forex Forecast 12.10.2018

EUR/USD

The Euro continued its growth on the large volume yesterday, but further movement was stopped by the formation of the new resistance level 1.1597. Nevertheless, the pair is testing this level at the moment, so we can consider a scenario of its breakout. This will allow us to open long positions with this instrument.

The breakout movement should be swift and sharp, as well as supported by the large volume, which will insure us against a false breakout and will be a more accurate signal to enter the market. A stop loss should be placed under the breakout volume bar. The potential of the deal is around 100 points.

GBP/USD

We need to point out the new volume level of support with the Pound. It is 1.3180. Considering this fact and the presence of the strong local uptrend, we still should give advantage to long positions.

We can enter the market after a small adjustment of the price down to get a better entry point. A stop loss should be placed just below the support level. The potential of the deal is about 130 points.

USD/JPY

The Yen corrected up after the creation of the new volume support level 111.90. The pair is currently trading in a small range between 2 strong levels: this mark and the previous resistance level 112.76 – 112.89. Hence, we can regard new positions only after the exit of the price from the consolidation. The breakout movement must be confident and rapid, as well as on the large volume that will insure against a false breakout.

USD/CAD

The Canadian dollar is located in a small range just under the new volume resistance level 1.3068. Considering the presence of the strong local uptrend, we still should give advantage to long positions. We can enter the market only after a sharp breakout of the resistance level on the large volume, which will be a more accurate signal. 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 Australiadn dollar adjusted up yesterday. Besides it, the rise was on the large volume. At the moment the pair is within the local consolidation between the support level 0.7058 and the resistance level 0.7200. Given these factors, we can regard new trading scenarios only after a steady exit from the consolidation. Moreover, the movement must be supported by the large volume, which will insure us against a false breakout.

XAU/USD

The price grew up strongly and broke out the previous resistance level of the local consolidation yesterday. Besides it, the upward movement was supported by the large volume, which only increases its value. Given these factors, we should consider exceptionally purchases.

We can open long positions after a small and smooth price correction to get a better entry point to the market. A stop loss should be placed slightly below the beginning of the volume breakout movement. The potential of the deal is more than 150 points.

The sentiment: this indicator affirms all our trading scenarios, which is an excellent additional signal. The only exception is gold, where the situation is 50/50, however, the tendency of moving of retail clients from purchases to sales is a good sign. With other instruments, we should wait for a sure exit from the ranges and only then we can enter the market.

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