Daily Technical Forex Forecast 02.11.2018


EUR/USD

The Euro went on rising yesterday and is currently trading a little bit below the resistance level 1.1430. Considering that the upward movement was sharp and supported by the large volume, we can regard a scenario of its breakout, which will consent us to open long positions.

The upward move must be abrupt and supported by the large volume, which will insure us against a false breakout and will be a more secure signal for entering the market. A stop loss should be located under the breakout volume bar. A potential of the deal is around 90-100 points.

GBP/USD

The same situation with the Pound as the price demonstrated a sharp growth on the large volume, which is a great bullish signal. It is also necessary to point out the new resistance level 1.3019, which contains increased volume. Considering that the pair is trading a little bit below this mark, we can open long positions only after its breakout.

The breakout move should be keen and supported by the large volume, which will be a more secure and precise signal for entering the market. A stop loss should be placed below the breakout volume bar. A potential of the deal is around 100-110 points.

USD/JPY

The Yen is still trading a little bit below the resistance level 113.28, so our previous scenario remains relevant: we can consider a scenario of its breakout, which will be a great bullish signal. The breakout move must be keen and supported by the large volume, that will be a more accurate and secure sign. A stop loss should be placed below the breakout volume bar. A potential of the deal is around 100 points.

If the pair goes on correcting down, we should stay out of the market.

USD/CAD

The Canadian dollar adjusted downwards and now is locked within the local range between the level of support 1.2988 and the level of resistance 1.3150. Hence, we can consider new positions here only after the sure breakout of one of these levels and the exit of the price from the consolidation. The breakout movement must be sharp and supported by the large volume, which will be a more secure and precise signal for entering the market.

AUD/USD

The Australian dollar showed a significant increase yesterday. The upward movement was rapid and supported by the large volume. In addition, we need to allocate a new support level 0.7170. Taking into account all these factors, we should give preference to precisely long positions with this currency pair. Purchases can be opened after a small and smooth correction of the price down to get a better entry point to the market. A stop loss should be placed just below the new support level. The potential of the deal is about 80 points.

XAU/USD

The price rose up on the increased volume yesterday. However, the price is still trading inside the local consolidation between the support level 1212.50 – 1242.50. Besides it, we need to point out that the large volume is concentrated inside this range, thus, the best solution is just to wait for the exit of the price from it.

The breakout movement must be sharp and supported by the large volume, which will be a more precise and secure signal for entering the market and will insure us against a false breakout. While the price is located in the range, we should stay out of the market.

The sentiment: the mood of the market fullay confirms all of our trading scenarios today, which is a good additional signal. As with USD/CAD and XAU/USD, we must wait for a sure exit of pairs from local consolidations and only after that we can regard new deals.