Daily Technical Forex Forecast 21.11.2018


EUR/USD

The Euro corrected down after the formation of the new level of resistance 1.1463 yesterday. The price is currently located inside the local range between this mark and the previous level of support 1.1267.

Therefore, we can regard new deals only after the sure and keen exit of the price from the local consolidation. Moreover, the breakout movement must be supported by the large volume, which will be a more secure and precise signal for entering the market.

GBP/USD

Yesterday, the Pound resumed its downward movement and is now trading near the support/lower boundary of the local consolidation 1.2742. Thus, we can consider a scenario of the breakdown of this mark, which will allow us to open short positions with this currency pair.

The breakout move should be rapid, sharp and on the large volume, which will insure us against a fake breakdown and will be a more accurate signal to enter the market. A stop loss must be placed slightly above the breakdown volume bar. The potential of the deal is more than 120 points.

USD/JPY

The Yen rose up sharply after the creation of the new level of support 112.35. The growth was supported by the increased volume. Furthermore, the price is locked in the local range between this mark and the level of resistance 113.69. Hence, we can consider new positions only after the confident exit of the price from this consolidation. The breakout movement must be supported by the large volume, which will be a more accurate and reliable signal for entering the market.

USD/CAD

The Canadian dollar demonstrated a sharp growth on the large volume and broke out the previous level of resistance, which is a strong bullish signal. Therefore, we should give advantage to purchases. We can enter the market after the smooth adjustment of the price down, in order to obtain a more profitable entry point. A stop loss should be placed below the beginning of the breakout move. A potential of the deal is more than 100 points.

AUD/USD

The Australian dollar showed an abrupt drop on the large volume yesterday. Besides it, we should point out a new resistance level 0.7330. So now the pair is trading within the local range between this mark and the level of support 0.7170. Thus, the best decision with this instrument is just to wait for the exit of the price from the local range. The breakout move must be abrupt and supported by the large volume, which will insure us against a false breakout.

XAU/USD

Gold adjusted downwards after the formation of the new resistance level 1227.00 – 1228.30. This level contains the large volume. Hence, we can ponder long positions only after the confident and sharp breakout of this mark.

The rise must be 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 around 80 points.

The sentiment: the mood of the market affirms our scenarios with the Pound and Canadian dollar, which is a good additional signal. The situation with gold is ambiguous, so we should be more careful. With all other pairs, we should wait for the exit of prices from local ranges.