Daily Technical Forex Forecast 25.10.2018


EUR/USD

As predicted, the Euro continued its decline and broke down the previous level of support yesterday. It is worth noting that the fall of the price was supported by the large volume, which only enhances its value and is an excellent bearish signal. Given all these factors, we should give preference to short positions with this currency pair.

We can enter the market and open sales after a small upward correction of the price, in order to obtain a better entry point. A stop loss must be placed slightly above the breakout volume bar. The potential of the deal is about 120 points.

GBP/USD

The Pound also demonstrated a sure and swift sink and broke down the previous support level, which is an excellent signal for opening short positions. Unfortunately, the fall was on the medium volume, so we can’t point out any new volume level, however, we still should give advantage to sales.

We can enter the market after a small upward price correction to get a better entry point. A stop loss should be placed slightly above the beginning of the breakout movement. The potential of the deal is 120-130 points.

USD/JPY

The Yen dropped rapidly yesterday, but the sink was on the average volume, so we can’t point out any new volume level. Besides it, the price is still inside the local consolidation between the support 111.74 and the resistance 112.76 – 112.89. Hence, we can open new positions only after a sure and sharp exit of the price from the local range. The breakout movement must be supported by the large volume that will insure us against a false breakdown.

USD/CAD

The Canadian dollar also showed an abrupt sink yesterday and is now in the middle of the local consolidation between 2 strong levels. They are the support 1.2910 and the resistance 1.3121. Given these factors, we can regard new trading scenarios only after a keen breakout of one of these levels and a sure exit of the price from the range. The breakout movement must be on the large volume, which will be a more precise signal to enter the market.

AUD/USD

The Australian dollar resumed sinking and tested the support level 0.7058. The pair failed to break it down, but it remained trading near it, which gives us the opportunity to regard a scenario of the breakdown of this mark. This will be a great bearish 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 above the breakout volume bar. The potential of the deal is more than 80 points.

XAU/USD

Gold grew up yesterday and is currently testing the resistance level/local maximum 1239.00. Therefore, we can regard a scenario of its breakout, which will be an excellent signal for opening long positions with this instrument.

The breakout move should be sure, keen and also on the large volume, which will insure us against a false breakout and will be a more precise signal to enter the market. A stop loss should be placed under the breakout volume bar. The potential of the deal is more than 150 points.

The sentiment: the mood of the market totally affirms our scenarios with EUR/USD, GBP/USD and AUD/USD. The situation with gold is 50/50, nevertheless, given technical factors, we should give preference to purchases. With USD/JPY and USD/CAD, we need to wait for a sure exit of prices from ranges and only after that we can enter the market.