Daily Technical Forex Report 02.11.2018

EUR/USD

continued growing yesterday and is currently trading a little bit below the resistance level 1.1430. Given that the upward movement was sharp and supported by the large volume, we can consider a scenario of its breakout, which will allow us to open long positions.

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

The rise must be keen and supported by the large volume, which will insure us against a fake breakout and will be a more reliable signal for entering the market. A stop loss should be located under the breakout volume bar. A potential of the deal is around 90-100 points.

Итог: long positions after the sure breakout of the resistance level.

GBP/USD

The similar situation with GBP/USD: the price showed an abrupt rise on the large volume, which is a strong bullish signal. We also should point out the new resistance level 1.3019, which contains increased volume. Given that the pair is located a little bit below this mark, we can open long positions only after its breakout.

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

The breakout movement must be sharp and supported by the large volume, which will be a more reliable and accurate signal for entering the market. A stop loss should be placed below the breakout volume bar. A potential of the deal is around 100-110 points.

Итог: purchases after the sharp breakout of the resistance.

USD/JPY

USD/JPY is still trading a little bit below the resistance level 113.28, so our previous scenario remains actual: we can consider a scenario of its breakout, which will be a great bullish signal. The breakout move must be keen and supported by the large volume, that will be a more accurate and secure sign. A stop loss should be placed below the breakout volume bar. A potential of the deal is around 100 points.

If the price continues adjusting down, we should stay out of the market.

Итог: long positions after the keen breakout of the resistance level.

USD/CAD

USD/CAD corrected down and now is located inside the local consolidation between the level of support 1.2988 and the level of resistance 1.3150. Thus, the best scenario with this instrument is just to wait for the confident breakout of one of these levels and the exit of the price from the range. The breakout movement must be abrupt and supported by the large volume, which will be a more reliable and accurate signal for entering the market.

Until that, we’d better stay out of the market.

Итог: waiting for the confident exit of the price from the range.

AUD/USD

AUD/USD demonstrated a huge growth on the large volume and broke out the precious level of resistance, which is a great bullish signal. We also should highlight the new support level 0.7170/ Considering all these factors, we should give preference to long positions. We can enter the market after a smooth correction of the price down, in order to get a more profitable entry point. A stop loss should be placed below the support level. A potential of the deal is around 80 points. 

Итог: long positions after the smooth correction of the price down.

XAU/USD

Gold also grew up strongly and on the increased volume yesterday. Nevertheless, the price is located within the local range between the support level 1212.50 – 1242.50. The large volume is concentrated inside this consolidation, hence, the best solution is just to wait for the exit of the price from it.

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

The breakout movement must be sharp and supported by the large volume, which will be a more precise and secure signal for entering the market and will insure us against a false breakout.

While the price is located in the range, we should stay out of the market.

Итог: new positions only after the exit of the price from the consolidation.

The mood of retail traders (trading against the “crowd”): this indicator totally affirms all of our trading scenarios, which is a strong additional signal. As with the Canadian dollar and gold, we should wait for a confident exit of pairs from local ranges and only after that we can regard new positions.

Potentially good deals: EUR/USD, GBP/USD, USD/JPY, AUD/USD

Stay out of the market: USD/CAD, XAU/USD

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