Daily Technical Forex Forecast 22.11.2018


EUR/USD

The Euro carries on trading inside the local range between 2 strong volume levels. They are the support level 1.1267 and the resistance level 1.1463. Hence, we can regard new positions after the exit of the price from this consolidation.

The breakout movement must be abrupt and sure + supported by the large volume, which will insure us against a false breakout and will be a more accurate signal for entering the market.

GBP/USD

The Pound goes on trading near the level of support/lower limit of the local range 1.2742. Therefore, we can ponder a scenario of its breakdown, which will be a great bearish signal and will consent us to open short positions.

The downward movement should be keen and supported by the large volume, which will be a more secure and precise signal for entering the market. A stop loss should be placed above the breakdown volume bar. A potential of the deal is more than 120 points.

USD/JPY

The Yen is still located in the middle of the local range between the level of support 112.35 and the level of resistance 113.69. Thus, we can consider new deals with this pair only after the confident and sharp exit of the price from the local consolidation. The breakout movement must be supported by the large volume, which will insure us against a false breakout and will be a more secure signal for entering the market.

USD/CAD

The Canadian dollar adjusted down yesterday, but the drop was smooth and on the small volume, so we can’t consider sales at the moment. Furthermore, given the recent abrupt rise on the large volume, we still should prefere a scenario of opening long positions. We can enter the market after a stoppage of the correction and a resumption of a sharp surge. 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 more than 100 points.

AUD/USD

The Australian dollar continues trading inside the local range between the level of support 0.7170 and the level of resistance 0.7330. Hence, we can regard new deals only after the breakout of one of these levels and the confident exit of the price from the consolidation. The breakout move must be keen and supported by the large volume, which will insure us against a fake breakout.

XAU/USD

Gold has resumed its growth and is now testing the resistance level 1227.00 – 1228.30. Given that the growth of the pair was sharp and on the increased volume, we can consider a scenario of its breakout, which will be an excellent signal for opening purchases.

The breakout movement must be confident and rapid, and also supported by the large volume, which will be a more accurate and reliable signal to enter the market. A stop loss should be placed slightly below the breakout volume bar. The potential of the deal is about 80 points.

The sentiment: the mood of the market fully confirms our scenarios with GBP/USD and USD/CAD, which is a good additional signal. The situation with gold is 50/50, so we should be more careful. With all other instruments, it is necessary to wait for the sure exit of prices from local ranges.