Daily Technical Forex Forecast 23.10.2018


EUR/USD

The Euro resumed falling and completely swallowed the previous rise. At the moment the price is located near the support/lower limit of the local consolidation 1.1433. Hence, we can regard the scenario of its breakdown, which will be a great bearish signal.

The breakout move should be sure and on the large volume, which will insure us against a fake breakdown. A stop loss should be placed slightly above the breakout volume bar. The potential of the deal is more than 100 points.

GBP/USD

As predicted, the Pound resumed falling. Moreover, the fall was supported by an increased volume, which is an excellent bearish signal. It is also worth highlighting the new support level 1.2958, so we can open sales only after a confident breakdown of this mark.

The movement should be abrupt, swift and supported by the large volume, which will insure us against a false breakdown and will be a more accurate signal to enter the market. A stop loss should be placed slightly above the breakdown volume bar. The potential of the deal is about 140 points.

USD/JPY

The Yen grew up and tested the resistance level 112.76 – 112.89, but failed to break it out. Nevertheless, the price is trading near this mark, so we can regard a scenario of its breakout. This will be a great bullish signal. The breakout movement must be sure and on the large volume that will insure us against a false breakout. A stop loss should be placed under the breakout volume bar. The potential of the deal is about 100 points.

USD/CAD

Nothing has changed with the Canadian dollar as the price is still located near the resistance level/local maximum 1.3121. Thus, our previous scenario remains actual: we can open purchases only after a sharp breakout of this mark. The movement should be supported by the large volume, which will be a more reliable signal to enter the market. A stop loss should be placed under the breakout volume bar. The potential of the deal is about 110 points.

AUD/USD

The Australian dollar demonstrated a sharp and significant drop yesterday. The price is currently trading near the support/lower limit of the local consolidation 0.7058. Therefore, we can consider the scenario of its breakdown, which will be an excellent bearish signal. The breakdown movement should be sharp and on the large volume, which will be a more accurate 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 80 points.

XAU/USD

Gold goes on trading inside the local consolidation just below the resistance level 1231.50. Considering this fact, our previous scenario remains actual: we can open long positions only after a breakout of this mark.

The breakout move should be rapid and sure, as well as supported by the large volume that will insure us against a false breakout. A stop loss should be placed under the breakout volume bar. The potential of the deal is more than 150 points.

The sentiment: this indicator totally affirms all of our trading scenarios, which is an excellent additional signal. The only exception is gold, where the situation is 50/50, however, given all technical factors, long positions are still in priority.