Daily Technical Forex Forecast 16.10.2018


EUR/USD

Yesterday, the Euro showed a significant growth and tested the resistance level 1.1597. The price could not break out this mark, but the pair remained trading near it, so we can consider a scenario of the breakout of the resistance. This will be a great bullish signal and allow us to open long positions.

The breakout movement must be confident and sharp, as well as on the large volume, which will be a more accurate and reliable signal to enter the market. A stop loss should be placed slightly below the breakout volume bar. The potential of the deal is about 110-120 points.

GBP/USD

Nothing has changed with the Pound as the pair is still located insider the local consolidation between 2 strong volume levels. They are the support 1.3030 and the resistance 1.3251. Hence, our previous scenario remains actual: we can regard new positions only after a sure exit of the price from the range.

The breakout movement must be swift and sharp, and also supported by the large volume. This will insure us against a false breakout and will be a more accurate and strong signal to enter the market.

USD/JPY

The Yen resumed falling  and broke down the previous support level. After the creation of the new volume level 111.74, the price corrected up. Nevertheless, the price is located near this mark, so we can regard a scenario of its breakdown, which will be an excellent bearish signal. The breakdown move must be sure, keen and on the large volume. A stop loss should be placed slightly above the breakout volume bar. The potential of the deal is more than 100 points.

USD/CAD

The Canadian dollar demonstrated a sahrp drop on the large volume. At the moment the pair is locked in the middle of the local consolidation between the support level 1.2910 and the resistance level 1.3068. Therefore, we can enter the market only after a sure breakout of one of the levels and an abrupt exit of the price from the range. The movement should be on the large volume, which will be a more reliable signal to enter the market.

AUD/USD

The Australian dollar goes on trading in the middle of the local consolidation between the support level 0.7058 and the resistance level 0.7200. Given this factor, we can consider new trading scenarios only after a swift exit of the pair from the local range. Besides it, the move must be on the large volume, which will insure us against a fake breakout.

XAU/USD

Gold carried on rising, but the upward move was stopped after the creation of the new resistance level 1231.50, after that the price adjusted down. However, given the presence of the local uptrend and the fact that the price is trading near this mark, we can consider a scenario of its breakout, which will be an excellent bullish signal.

The breakout movement must be sharp and on the large volume, which will be a more accurate and reliable signal to enter the market. A stop loss should be placed slightly below the breakout volume bar. The potential of the deal is more than 150 points.

The sentiment: the mood of the market affirms our trading scenario with the Yen. The situation with the Euro and gold – 50/50, so we should wait for confirmation signals. With other currency pairs, we are waiting for prices to exit from consolidations and only after that we can consider new deals.