Daily Technical Forex Report 08.11.2018

 

EUR/USD

EUR/USD showed an abrupt downward correction after the creation of the new resistance level 1.1490. Hence, the price is currently located in the local consolidation 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)

That’s why we can consider new trading scenario with this currency pair only after the sure and keen exit of the price from the local consolidation. The breakout movement must be supported by the large volume, which will be a more precise and secure signal for entering the market.

While the price is located within this range, we’d better skip this instrument from our trading plan.

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

GBP/USD

GBP/USD also adjusted down yesterday, but the fall was smooth and on the small volume. Therefore, our previous scenario remains the same: long positions should be in priority. However, we can enter the market only after the stoppage of the drop and resumption of the sharp rise.

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

Furthermore, the upward move must be 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 beginning of the growth. A potential of the deal is more than 120 pips.

The bottom line: long positions are still in priority.

USD/JPY

USD/JPY resumed its growth and is currently testing the resistance level/local maximum 113.70. Hence, we can and should consider a scenario of its breakout, which will allow us to open long positions. The surge must be keen and supported by the large volume, that will insure us against a fake breakout. A stop loss should be placed under the breakout volume bar. A potential of the deal is around 100 points.

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

USD/CAD

USD/CAD fell down, then grew up and is still trading near the level of resistance/upper limit of the local consolidation 1.3150. Thus, we can regard a scenario of the breakout of this mark, which will be a great bullish signal. The move must be sharp and supported by the large volume, so that it will insure us against a false 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: long positions after the breakout of the resistance.

AUD/USD

AUD/USD went on rising, but the move was on the small volume. Hence, we should give preference to long positions, but we don’t have a good place for a stop loss now. That’s why we should wait for the continuation of the surge, but the move must be supported by the large volume. In such case we can place a stop loss below the beginning of it. A potential of the deal is more than 80 points.

The bottom line: long positions after the continuation of the keen rise.

XAU/USD

Nothing has changed with gold: the price is still located inside the local consolidation between the level of support 1212.50 and the level of resistance 1242.50. We 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)

Therefore, we can consider new positions only after the sure and keen breakout of one of these levels and the exit of the price from the local consolidation. The breakout move must be supported by the large volume, which will insure us against a fake breakout.

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

The mood of retail traders (trading against the "crowd"): this indicator totally confirms all our trading scenarios, which is a good additional signal. As with the Euro and gold, we need to wait for the exit of prices from local ranges and only after that we can consider new positions.

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

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

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