Daily Technical Forex Report 05.11.2018

EUR/USD

EUR/USD tested the resistance level 1.1430, but could not break it and fell down sharply. The move was supported by the large volume, so now we can’t consider long positions. Furthermore, the price is currently trading in the local range between this mark and the previous level of support 1.1304.

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

Given all these factors, we can open new positions with the Euro only after the confident and abrupt exit of the price from the consolidation. Moreover, the breakout movement must be supported by the large volume, which will be a more precise signal for entering the market.

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

The bottom line: waiting for the sure exit of the price from the range.

GBP/USD

GBP/USD also corrected downwards on Friday. At the moment the price is located in the middle of the local consolidation between 2 strong levels. They are the support 1.2863 and the resistance 1.3034. We need to point out that both levels contain the large volume.

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

Considering all these factors, we can enter the market only after the exit of the price from the local consolidation. The movement should be keen and supported by the large volume, which will be a more reliable signal and will insure us against a fake breakout.

While the price is trading within this range, we should stay out of the market.

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

USD/JPY

USD/JPY continued growing and is currently testing the resistance level 113.28. Thus, we can and should consider a scenario of its breakout, which will be a great bullish signal. The rise must be sharp and supported by the large volume, which will insure us against a false breakout. A stop loss should be placed below the breakout volume. A potential of the deal is around 120 points.

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

USD/CAD

USD/CAD also demonstrated an abrupt growth and is located a little bit below the resistance level/upper limit of the local consolidation 1.3150. Therefore, we can regard a scenario of its breakout, which will allow us to open long positions with this pair. The movement must be keen and supported by the large volume, which will be a more accurate signal for entering the market. A stop loss should be placed below the breakout volume bar. A potential of the deal is more than 100 points.

If the price stays within the range, we should skip this instrument from our trading plan.

The bottom line: purchases after the breakout of the resistance level.

AUD/USD

AUD/USD showed a sharp drop after the formation of the new resistance level 0.7244. The price is trading inside the local consolidation between this mark and the support level 0.7170. Therefore, we should wait for the sure and sharp exit of the pair from the local range and only after that we can consider new positions. Moreover, the breakout move must be supported by the large volume, which will be a more secure signal for entering the market.

Until that, while the price is located inside the range, we should stay out of the market.

The bottom line: waiting for the confident exit of the price from the consolidation.

XAU/USD

Nothing has changed with gold as the price is still locked within the local consolidation between the level of support 1212.50 and the level of resistance 1242.50. We should note that the large volume is concentrated inside this range.

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

Hence, the best solution with gold is just to wait for the sure and sharp exit of the price from the consolidation. Furthermore, the breakout movement should be supported by the large volume, which will be a more precise and secure signal for entering the market.

Until that, we’d better omit this pair from out trading plan.

The bottom line: new deals only after the price gets out of the range.

The mood of retail traders (trade against the “crowd”): this indicator confirms our scenario with the Yen, which is a good additional signal. The opposite situation with USD/CAD, so we should wait for more accurate signal. With other instruments, it is necessary to wait for the confident exit of prices from local range and only after that we could open new positions.

Potentially good deals: USD/JPY, USD/CAD,

Stay out of the market: EUR/USD, GBP/USD, AUD/USD, XAU/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.