Daily Technical Forex Forecast 08.11.2018


EUR/USD

The Euro demonstrated a sharp drop after the formation of the new resistance level 1.1490. Therefore, the price is currently located in the local range between this mark and the previous level of support 1.1304.

Given all these factors, we can regard new trading scenario with this currency pair only after the confident and abrupt exit of the price from the local range . The breakout movement must be supported by the large volume, which will be a more precise and secure signal for entering the market.

GBP/USD

The Pound also corrected down yesterday, but the sink was smooth and on the small volume. Thus, our previous scenario remains relevant: long positions should be in priority. Nevertheless, we can enter the market only after the stoppage of the drop and resumption of the sharp growth.

Moreover, the surge must be 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 beginning of the growth. A potential of the deal is more than 120 pips.

USD/JPY

As predicted, the Yen resumed its growth and completely absorbed the previous bearish impulse, which is an excellent bullish signal. At the moment, the price is testing the resistance level/local maximum 113.70, which allows us to consider a scenario of the breakout of this mark. This will be an excellent signal to open purchases. The breakout movement must be swift and on the large volume, which will be a more accurate and strong signal to enter the market, and also insure us against a false breakout. A stop loss should be placed under the breakout volume bar. The potential of the deal is about 100 points.

USD/CAD

The Canadiadn dollar is still trading a little bit below the level of resistance/upper boundary of the local range 1.3150. Hence, we can consider a scenario of the breakout of this mark, which will be a great bullish signal. The breakout movement should be keen and supported by the large volume, so that it will insure us against a false 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 carried on its growth, but the move was on the small volume. Therefore, we should give preference to long positions, but we don’t have a good place for a stop loss now. That’s why we should wait for the continuation of the surge, but the move must be supported by the large volume. In such case we can place a stop loss below the beginning of it. A potential of the deal is more than 80 points.

XAU/USD

Gold is still trading within the local range between the level of support 1212.50 and the level of resistance 1242.50. We should note that the large volume accumulation is concentrated within this range.

Hence, we can regard new positions only after the confident and sharp breakout of one of these levels and the exit of the price from the local range. The breakout move must be supported by the large volume, which will insure us against a fake breakout.

The sentiment: this indicator fully affirms all our trading scenarios, which is a good additional signal. As with EUR/USD and XAU/USD, we should wait for the exit of prices from local consolidations and only after that we can regard new positions.