Daily Technical Forex Forecast 17.10.2018


EUR/USD

The Euro tested the previous resistance level, but could not break it out and then demonstrated an abrupt adjustment. We also should correct the resistance level, now it is the mark 1.1615. The pair is currently located inside the local consolidation between this level and the support level 1.1505 – 1.1516.

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

GBP/USD

Nothing has changed with the Pound as the pair is still trading within the local range between 2 strong volume levels. They are the support 1.3030 and the resistance 1.3251.

Considering this factor, we can open new positions only after a sure and swift exit of the pair from this consolidation. The breakout movement must be supported by the large volume that will insure us against a false breakout.

USD/JPY

The Yen adjusted up yesterday and is now located inside the local consolidation between the support level 111.74 and the resistance level 112.76 – 112.89. Hence, we can regard new trading scenarios only after the sharp exit of the price from the range. Besides it, the move must be supported by the large volume, which will be a more accurate and strong signal to enter the market.

USD/CAD

The Canadian dollar demonstrated an abrupt fall on an increased volume and is currently located near the support/lower limit of the local consolidation 1.2910. It gives us the opportunity to regard a scenario of its breakdown, which will be an excellent bearish signal. The breakout movement should be sharp and on the large volume, which will be a more reliable signal to enter the market. A stop loss should be placed slightly above the breakdown volume bar. The potential of the deal is about 90-100 points.

If the price continues trading inside the consolidation, it is better to stay out of the market.

AUD/USD

The Australian dollar is located within the middle of the local range between the support level 0.7058 and the resistance level 0.7200. Therefore, we can consider new deals only after a confident breakout of one of these levels and the exit of the price from the range. Moreover, the movement should be supported by the large volume, which will insure us against a false breakout and will be a more accurate signal to enter the market.

XAU/USD

After the test of the resistance level 1231.50, gold adjusted downwards. The drop was sharp, but on the small volume, therefore, it is not worth considering short positions. Moreover, given the recent sharp rise of the pair on the large volume, we still should give preference to long positions.

Purchases can be opened after a confident and sharp breakout of the resistance level 1231.50. The move should be supported by the large volume, which will be a more accurate 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.
If the price continues adjusting down, it is better to stay out of the market.

The sentiment: this indicator affirms our scenario with USD/CAD. The situation with gold is 50/50, so we should wait for the appearance of an additional signal. With all other instruments, we need to wait for the exit of the price from ranges and only after that can we regard new deals.