Daily Technical Forex Forecast 31.10.2018


EUR/USD

The Euro went on falling yesterday. We also need to point out the new resistance level 1.1379, in which the increased volume is concentrated. The previous resistance level 1.1428 also remains actual. Hence, we should give preference to short positions.

We can enter the market after the resumption of the rapid fall of the pair, preferably on an increased volume. A stop loss should be placed slightly above the resistance level 1.1379. The potential of the deal is more than 100 points.

GBP/USD

The Pound also demonstrated a significant and abrupt drop yesterday, but the move was on the average volume, so we cannot single out any particular level. However, given the strong downtrend, we should give preference to sales.

Short positions can be opened after the continuation of the price fall, but the movement should be supported by the large volume, which will be a more accurate and strong signal to enter the market. A stop loss should be placed just above the beginning of this sink. The potential of the deal is more than 120 points.

USD/JPY

The Yen grew up strongly and broke out the previous resistance level yesterday, which is an excellent bullish signal. Therefore, we should give preference to purchases. Long positions can be opened after a small and smooth correction of the price down to get a more profitable entry point. A stop loss should be placed under the start of the breakout movement. The potential of the deal is about 130 points.

USD/CAD

The Canadian dollae carries on trading just below the resistance/local maximum 1.3151. Thus, our previous scenario remains relevant: we can open long positions only after a confident and sharp breakout of this mark. The breakout movement must be 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 100 points.

AUD/USD

The Australian dollar is also all within the local range between the support level 0.7026 and the resistance level 0.7150. Given this factor, we can consider new trading scenarios only after a confident and rapid exit of the price from the consolidation. The breakout movement must be swift and sharp, as well as on the large volume, which will insure us against a false breakout.

XAU/USD

Gold showed a steady and sharp drop yesterday. As a result, the price broke the previous support level/lower limit of the local range, which is an excellent bearish signal. Unfortunately, the movement was on the average volume, so we cannot point out specific levels or zones, however, we should give priority to short positions.

We can enter the market and open sales after a small and smooth upward price correction to get a better entry point. The growth should be on the small volume. A stop loss should be placed slightly above the beginning of the breakout movement. The potential of the deal is more than 150 points.

The sentiment: this indicator totally acknowledges all of our trading scenarios, which is a strong additional signal. As with the Australian dollar, we should wait for a confident exit of the pair from the local consolidation and only after that we can consider new deals.

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