Daily Technical Forex Report 07.11.2018

EUR/USD

EUR/USD grew up and broke out the previous level of resistance, which is a good bullish signal. Unfortunately, the rise was on the small volume, so we can’t enter the market at the moment. Nevertheless, we still should give preference to long positions.

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

We can enter the market after the resumption of the growth, but the movement must be supported by the large volume, which will be a more reliable signal for entering the market. A stop loss should be placed below the beginning of this move. A potential of the deal is around 110 points.

The bottom line: long positions after the resumption of the rise on the large volume.

GBP/USD

GBP/USD continued rising, but the movement was smooth and on the average volume, so we can’t point out any new volume levels or zones. However, we still should give advantage to long positions with the Pound. 

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

Purchases can be opened after the continuation of the growth, but the movement must be supported by the large volume, which will be a more secure signal for entering the market. A stop loss should be placed below the beginning of this rise. A potential of the deal is more than 120 points.

The bottom line: purchases should be in priority.

USD/JPY

USD/JPY broke out the previous resistance level, but corrected down after the creation of the new volume level 113.70. Thus, we can open long positions only after the confident breakout of this mark. The breakout move must be 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 around 100 points.

If the price goes on falling, we should stay out of the market.

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

USD/CAD

USD/CAD is still trading a little bit below the level of resistance/upper limit of the local range 1.3150, so our previous scenario remains the same: we can open long positions only after the sharp breakout of this mark. The rise must be sure and 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 more than 100 points.

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

AUD/USD

AUD/USD also grew up and broke out the resistance level, but the move was on the small volume, so we can’t enter the market now. Nevertheless, we should give preference to long positions. We can enter the market after the continuation of the upsurge, but the move must be abrupt and supported by the large volume, which will be a more precise signal for entering the market. A stop loss should be placed below the beginning of this movement. A potential of the deal is more than 80 points.

The bottom line: purchases after the resumption of the keen growth.

XAU/USD

Gold carries on trading within the local consolidation between 2 strong volume levels. They are the support level 1212.50 and the resistance level 1242.50. Besides it, 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)

Given these factors, we can open new positions only after the exit of the price from the local consolidation. The breakout movement must be sharp, confident and supported by the large volume, which will be a more reliable signal for entering the market.

While the price is trading inside this 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"): the sentiment of the market totally affirms all our trading scenarios, which is a good additional signal. The only exception is EUR/USD, so we need to wait for the appearance of strong confirming signal. As with gold, we should wait for the exit of the pair from the range and only after that we can regard new positions.

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

Stay out of the market: XAU/USD

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