Daily Technical Forex Forecast 27.11.2018


EUR/USD

The Euro continued falling and now is located a little bit above the level of support 1.1267. The sink was supported by the increased volume. Thus, we can and should regard a scenario of the breakdown of this mark, which will be a great bearish signal.

The breakout movement must be sharp and supported by the large volume, which will be a more secure and accurate signal for entering the market. A stop loss should be placed above the breakdown volume bar. A potential of the deal is more than 100 points.

While the price is located inside the consolidation, we should stay out of the market.

GBP/USD

After a slight correction, the Pound resumed its rapid decline and is now trading near the support/lower limit of the local range 1.2742. This gives us the opportunity to consider a scenario of its breakdown, which will be an excellent signal for opening short positions with this pair.

The breakout movement should be confident, sharp, and also supported by the large volume, which will be a more accurate and strong signal to enter the market, and also insure us against a false breakdown. A stop loss should be placed slightly above the breakout volume bar. The potential of the deal is more than 120 points.

USD/JPY

The Yen went on growing and now is trading a little bit below the level of resistance/upper boundary of the local consolidation 113.69. Therefore, we can and should consider a scenario of its breakout, which will allow us to open long positions. The growth must be keen and on the large volume, which will be a more reliable 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.

If the price goes on trading inside the range, we’d better stay out of the market.

USD/CAD

The Canadian dollar also showed a significant rise and is currently trading near the level of resistance/upper limit of the local range 1.3315. Hence, we can regard a scenario of its breakout, which will be a good bullish signal. The breakout move must be sharp, confident and on 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.

If the price is trading inside the range, we’d better stay out of the market.

AUD/USD

The Australian dollar is still located inside the local range between the level of support 0.7170 and the level of resistance 0.7330. Thus, our previous scenario remains actual: we can consider new positions only after the sure and keen breakout of one of these levels and the exit of the price from the range. The move must be supported by the large volume, which will insure us against a false breakout.

While the price is located inside this range, we should omit it from our trading plan.

XAU/USD

Gold adjusted down yesterday. Yes, the move was on the small volume, but the price can’t break out the resistance for a long time. Furthermore, the pair is trading within the local consolidation between the support 1208.00 and the resistance 1227.00 – 1228.30.

Considering all these factors, the best decision with gold is just to wait for the sure and abrupt exit of the price from the local range. The breakout move must be supported by the large volume, which will be a more precise signal for entering the market.

Until that, while the pair is located within this range, we should skip this instrument from our trading plan.

The sentiment: the mood of the market affirms all our trading scenarios, which is a nice additional signal. As with other currency pairs, we can open new positions only after the confident exit of prices from consolidations.