Daily Technical Forex Forecast 06.11.2018


EUR/USD

The Euro resumed its abrupt rise and is currently located a little bit below the resistance level 1.1430. Considering this fact, we can regard a scenario of its breakout, which will be a good bullish signal and will consent us to open long positions.

The growth should be sure and supported by the large volume, which will insure us against a fake breakout and will be a more accurate and reliable signal. A stop loss should be placed below the breakout volume bar. A potential of the deal is around 110 – 120 points.

GBP/USD

The Pound showed a rather sharp growth and broke out the previous resistance level yesterday, but the movement was on the small volume, therefore at the moment we cannot open long positions. In addition, we should highlight the new level of support 1.2964.

Thus, we should give preference to purchases, but it is worth entering the market after a small and smooth adjustment of the price down, in order to get a better entry point. A stop loss should be placed just below the new support level. The potential of the deal is more than 120 points.

USD/JPY

The Yen is testing the resistance level/local maximum 113.28, so our previous scenario is still actual: we can open long positions after the sure and keen breakout of this mark. The growth should be supported by the large volume, which will insure us against a false breakout. A stop loss should be placed below the breakout volume bar. A potential of the deal is around 110-120 points.

USD/CAD

The Canadian dollar is still located a little bit below the resistance level/upper boundary of the local range 1.3150. Hence, our previous scenario remains relevant: we can regard a breakout of its mark, which will be a great bullish signal. The movement should be sharp and supported by the large volume, which will insure us against a fake breakout and will be a more secure signal for entering the market. A stop loss should be placed below the breakout volume bar. A potential of the deal is more than 100 points.

AUD/USD

The Australian dollar is locked inside the local range between the level of support 0.7170 and the level of resistance 0.7244. Thus, we can consider new positions only after the confident and abrupt breakout of one of these levels and the exit of the price from the consolidation. The breakout move must be supported by the large volume, which will be a more precise signal for entering the market.

XAU/USD

The price is also trading within the local range between 2 strong volume levels. They are the support level 1212.50 and the resistance level 1242.50. It is necessary to point out the large volume accumulation, which is concentrated inside this consolidation.

Considering all these factors, we can regard new deals only after the sure exit of the price from the local range. The breakout movement must be keen and supported by the large volume, which will be a more secure signal for entering the market.

The sentiment: this indicator totally confirms our scenarios with the Pound, Yen and Canadian dollar. As with the Euro, it is necessary to wait for the appearance of strong additional confirmation signal. As with other instruments, we need to wait for exit of prices from range and only after that we can consider new positions.