Daily Technical Forex Report 01.11.2018

EUR/USD

After the formation of the new volume level of support 1.1304, EUR/USD corrected upwards. The growth was smooth and the pair is located near the new support, so we can’t consider long positions at the moment. Moreover, considering the strong local downtrend, we still should give preference to short positions.

(this is a futures chart, so the price here differs from the Forex, but it moves totally the same)

However, we can open sales only after the resumption of the fall and the sure breakdown of the new support level. The drop must be sharp and supported by the large volume, which will insure us against a false breakdown. A stop loss should be placed above the breakdown volume bar. A potential of the deal is more than 100 points.

The bottom line: short positions after the sure breakdown of the new support level.

GBP/USD

GBP/USD also adjusted up after the creation of the new level of support 1.2752 yesterday. The rise was abrupt, but on the small volume. Besides it, there is a strong downtrend with this instrument, so we still should give advantage to a scenario of opening sales.

(this is a futures chart, so the price here differs from the Forex, but it moves totally the same)

We can open short positions after the resumption of the sink and the sharp breakdown of the new support level. The fall must be supported by the large volume, which will be a more accurate signal for entering the market. A stop loss should be located above the breakdown bar. A potential of the deal is more than 120 points.

The bottom line: sales after the sharp breakdown of the new level of support.

USD/JPY

USD/JPY fell down sharply after the formation of the new resistance level 113.28. The drop was on the small volume, so now we should not regard short positions. Moreover, given a recent exit of the price from the range up, we should prefer a scenario of opening long positions.

We can enter the market after the stoppage of the correction, resumption of the rise and the breakout of the new resistance level. The move must be supported by the large volume, which will be a more reliable signal. A stop loss should be placed below the breakout bar. A potential of the deal is around 120 points.

If the price continues falling, we should better stay out of the market.

The bottom line: long positions after the keen breakout of the resistance level.

USD/CAD

USD/CAD grew up and broke out the previous resistance level, which is a good bullish signal. Nevertheless, the price could not go on rising and corrected down, but the sink was smooth and on the small volume. We should also point out the new support level 1.3109. Considering all these factors, we should give preference to long positions. We can enter the market after the stoppage of the adjustment and a resumption of the sharp growth. A stop loss should be placed below the new support level. A potential of the deal is more than 100 points.

The bottom line: purchases after the resumption of the sharp rise.

AUD/USD

AUD/USD demonstrated an abrupt growth, but the rise was on the small volume, so we can’t highlight any new volume level or zone. Moreover, the pair is still located inside the local range between the support level 0.7026 and the resistance level 0.7150. Hence, we can consider new trading scenarios with this instrument only after the sure and keen exit of the price from the range. The breakout move must be supported by the large volume, which will insure us against a fake breakout.

While the pair is locked within this consolidation, we should stay out of the market.

The bottom line: new positions only after the confident exit of the pair from the local range.

XAU/USD

Gold also rose up after the formation of the new level of support 1212.50, but this move was smooth and on the small volume, so we can’t regard purchases now. Furthermore, considering the recent exit of the price from the consolidation down, we should give preference to short positions.

(this is a futures chart, so the price here differs from the Forex, but it moves totally the same)

We can open sales after the resumption of the sharp fall and the sure breakdown of the support level. The sink must be supported by the large volume, which will insure us against a fake breakdown. A stop loss should be placed above the breakdown volume bar. A potential of the deal is more than 150 points.

In case of the continuation of the growth, we’d better stay out of the market.

The bottom line: short positions after an abrupt breakdown of the support level.

The mood of retail traders (trading against the "crowd"): the sentiment of the market fully confirms all of our trading scenarios, which is an excellent additional signal. With AUD/USD, we should wait for a confident exit of the price from the local consolidation and only after that we can consider new positions.

Potentially good deals: EUR/USD, GBP/USD, USD/JPY, USD/CAD, XAU/USD

Stay out of the market: AUD/USD

Legal: RForex Ltd abide all rules & regulations of international business company, under the company act of Saint vicent & Grenadines. Company provides trading services activities and brokerage, training, managed account services in currencies, commodities, indexes, CFDs and leveraged financial instruments.

Risk Warning: Trading leveraged products such as Forex and CFDs may not be suitable for all investors as they carry a high degree of risk to your capital. Trading such products is risky and you may lose all of your investment. Please read the full Risk Disclosure.