Daily Technical Forex Forecast 07.11.2018


EUR/USD

The Euro showed a sharp rise and broke out the previous resistance level. This is an excellent bullish signal, but, unfortunately, the movement was on the small volume, so at the moment we cannot open long positions.

Purchases can be opened after the continuation of the rapid upward movement, but growth 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 slightly below this movement. The potential of the deal is about 110 points.

GBP/USD

The Pound went on growing, but the move was smooth and on the medium volume, so we can’t point out any new volume levels or zones. Nevertheless, we still should give preference to long positions with this currency pair.

We can enter the market after the continuation of the rise, but the move must be supported by the large volume, which will be a more reliable signal for entering the market. A stop loss should be placed below the beginning of this rise. A potential of the deal is more than 120 points.

USD/JPY

The Yen broke out the previous resistance level, but adjusted down after the formation of the new volume level 113.70. Hence, we can regard purchases only after the sure breakout of this mark. The breakout move must be supported by the large volume, which will be a more 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 points.

USD/CAD

The Canadian dollar is still located a little bit below the level of resistance/upper boundary of the local consolidation 1.3150, so our previous scenario remains actual: we can consider long positions only after the keen breakout of this mark. The movement should be confident and supported by the large volume, which will insure us against a fake breakout. 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 demonstrated an abrupt rise and broke out the resistance level, but the growth was on the small volume, so we can’t enter the market now. However, we should give advantage to long positions. We can enter the market after the continuation of the upward move, but it must be keen and supported by the large volume, which will be a more accurate signal for entering the market. A stop loss should be placed below the beginning of this movement. A potential of the deal is more than 80 points.

XAU/USD

Nothing has changed with gold as the price is locked inside the local range between 2 strong volume levels. They are the support level 1212.50 and the resistance level 1242.50. We also should note that the large volume is concentrated within 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 abrupt and supported by the large volume, which will be a more reliable and accurate signal for entering the market.

The sentiment: this indicator totally confirms all our trading scenarios, which is a good additional signal. The only exception is the situation with the Euro, so we need to wait for the appearance of strong confirming signal. As with gold, we need to wait for the sure exit of the price from the consolidation and only after that we can consider new deals.