Daily Technical Forex Forecast 20.11.2018


EUR/USD

The Euro went on rising and broke out the previous resistance level, which is a strong bullish signal. Unfortunately, the upward movement was on the medium volume, so we can’t enter the market at the moment as the possibility of the adjustment is pretty high.

Hence, we can consider purchases after the resumption of the growth, but the move must be supported by the large volume, which will be a more secure signal for entering the market. A stop loss should be placed below this move. A potential of the deal is around 110 points.

GBP/USD

The Pound carried on correcting upwards and is currently located in the local range between 2 strong levels. They are the level of support 1.2742 and the level of resistance 1.3031. Both levels contain the large volume. Therefore, we can regard new deals only after the exit of the price from the consolidation.

The breakout movement must be sure, keen and supported by the large volume, which will be a more secure and precise signal for entering the market and will insure us against a false breakout. If the price continues trading inside this consolidation, we should stay out of the market.

USD/JPY

The Yen goes on its abrupt drop yesterday. Besides it, we should allocate the new resistance level 112.90. Considering these factors, we should give preference to short positions. We can enter the market after a smooth adjustment of the price up, in order to obtain a more profitable entry point. A stop loss should be placed above the resistance. A potential of the deal is 80 points.

USD/CAD

The Canadian dollar is still locked in the middle of the local range between the level of support 1.3055 and the level of resistance 1.3258. Thus, we can ponder new positions only after the sure and sharp exit of the price from the consolidation. The breakout move should be supported by the large volume, which will be a more reliable and accurate signal for entering the market.

AUD/USD

The Australian dollar fell down, but the movement was smooth and on the small volume. That’s why we can’t open short positions. Furthermore, given a strong support level 0.7250 and recent sharp growth, we still should regard purchases. We can enter the market after a stoppage of the adjustment and a resumption of the sharp growth on the large volume, which will be a more accurate signal for entering the market. A stop loss should be placed below the support level. A potential of the deal is more than 80 points.

XAU/USD

Gold continued its growth yesterday and is currently testing the resistance level 1223.50 – 1224.90. This level contains the large volume, so its breakout will be an excellent signal for opening long positions.

The breakout movement should be swift and sharp, and also supported by the large volume, which will be a more accurate and strong signal to enter the market. It will 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.

The sentiment: this indicator totally confirms all our trading scenarios, which is a good additional signal. The only exception is gold, so we should wait for the appearance of strong confirmational signal to open long positions. As with GBP/USD and USD/CAD, it is necessary to wait for the confident exit of the price from the consolidation.