Daily Technical Forex Report 06.11.2018

EUR/USD

EUR/USD resumed its sharp growth and now is located a little bit below the resistance level 1.1430. Given this fact, we can consider a scenario of its breakout, which will be a good bullish signal and 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 breakout movement must be confident and supported by the large volume, which will be a more precise and secure signal. A stop loss should be placed below the breakout volume bar. A potential of the deal is around 110 – 120 points.

If the price goes on trading inside the range, we should stay out of the market.

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

GBP/USD

GBP/USD also grew up and broke out the previous resistance level, which is a good bullish signal. Nevertheless, the move was on the small volume, so we can’t open long positions at the moment.

We also should point out the new support level 1.2964, which was created yesterday.

(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 regard purchases after a smooth and small adjustment of the price down, in order to get a better entry point. A stop loss should be placed below the new support level. A potential of the deal is more than 120 points.

The bottom line: purchases after a small correction of the price down.

USD/JPY

USD/JPY is testing the resistance level/local maximum 113.28, so our previous scenario remains the same: we can open long positions after the confident and sharp breakout of this mark. The rise must be supported by 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 around 110-120 points.

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

USD/CAD

Nothing has changed with USD/CAD as the price is located a little bit below the resistance level/upper limit of the consolidation 1.3150. Thus, our previous scenario is still actual: we can consider a breakout of its mark, which will be a great bullish signal. The growth must be keen and supported by the large volume, which will insure us against a false breakout and 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 more than 100 points.

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

AUD/USD

AUD/USD carries on trading within the local consolidation between the level of support 0.7170 and the level of resistance 0.7244. Therefore, we can regard new positions only after the sure and abrupt breakout of one of these levels and the exit of the price from the range. The breakout move must be supported by the large volume, which will be a more accurate signal for entering the market.

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

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

XAU/USD

Gold is also located inside the local consolidation between 2 strong volume levels. They are the support level 1212.50 and the resistance level 1242.50. We also should note that the large volume accumulation is concentrated within this range.

(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 consider new positions only after the confident exit of the price from the local consolidation. The breakout movement must be keen and supported by the large volume, which will be a more secure signal for entering the market.

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

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

The mood of retail traders (trading against the "crowd"): this indicator totally confirms our scenarios with GBP/USD, USD/JPY and USD/CAD. As with EUR/USD, we need to wait for a strong additional confirmation signal. As with other instruments, we need to wait for exit of prices from range and only after that we can consider new positions.

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

Stay out of the market: AUD/USD XAU/USD

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