Daily Technical Forex Forecast 24.10.2018


EUR/USD

The Euro tested the support level 1.1433, but could not break it down. However, the price is still located near this mark, so our previous scenario remains relevant: we can open sales only after its breakdown.

The breakdown movement should be confident and sharp, and also supported by the large volume, which will be a more accurate and reliable 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.

GBP/USD

The Pound tested the support level 1.2958 and then sharply corrected upwards. Nevertheless, the price failed to continue its growth, plummeted and completely swallowed the previous upward movement, which indicates the strength of the sellers in the market. Moreover, the pair is now trading near the support level, so we should give preference to short positions.

We can enter the market after a rapid fall and a confident breakdown of the support level on the large volume, which will insure us against a false breakdown. A stop loss should be placed slightly above the breakout volume bar. The potential of the deal is about 140 points.

USD/JPY

The Yen adjusted down yesterday, but after the appearance of the large volume on the market, it resumed its growth again. Now the pair is again trading near the resistance level 112.76 – 112.89, so we can consider the scenario of its breakdown, which will be an excellent bullish signal. The brekaout move must be supported by the large volume, which will be a more accurate signal to enter the market. A stop loss should be placed under the breakdown volume bar. The potential of the deal is about 100 points.

USD/CAD

The Canadian dollar corrected down yesterday, but the fall was smooth and on the small volume, so we should not regard short positions now. Moreover, given the fact that the pair is near the resistance level 1.3121, we can consider a scenario of its breakdown, which will be an excellent signal for opening purchases. The breakout movement must be confident and on the large volume. A stop loss should be placed under the breakout volume bar. The potential of the deal is about 100 points.

 

AUD/USD

The Australian dollar corrected up yesterday and goes on trading within the local range 0.7058 – 0.7200. Hence, the best decision with this instrument will be to wait for a confident and rapid exit of the price from the consolidation. Besides it, the breakdown movement must be abrupt and supported by the large volume, which will insure us against a false breakout.

XAU/USD

Gold showed a significant and sharp rise, after which it broke out the previous resistance level, which is an excellent bullish signal. Thus, we should give preference exactly to long positions. Nevertheless, purchases can be opened only after the breakout of the new resistance level 1239.00, which stopped the upward price movement.

The breakdown must be confident and supported by the large volume, which will be a more accurate and strong 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 fully confirms all our trading scenarios, except gold, according to which the situation is 50/50. However, given the technical factors, long positions should be in priority. With AUD/USD, we need to wait for a sure exit of the pair from the range .