Daily Technical Forex Report 13.11.2018

EUR/USD

EUR/USD went on falling and broke down the previous level of support, which is a great bullish signal. Furthermore, the drop was sharp and on the large volume, which only enhances its strength. Given these factors, we should give preference to short 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 smooth correction of the price up, in order to get a better entry point. Growth must be on the small volume. A stop loss should be placed above the beginning of the breakdown movement. A potential of the deal is more than 100 points.

The bottom line: short positions after a smooth upward correction.

GBP/USD

GBP/USD adjusted upwards, but after the formation of the new resistance level 1.2906 – 1.2920, resumed its drop. We should note that the large volume is concentrated within this level, therefore, we should give advantage to sales until its breakout.

(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 an abrupt fall, which will be a more accurate signal for us. A stop loss should be located above the new level of resistance with a little margin. A potential of the deal is more than 120 points.

The bottom line: sales after the resumption of the fall.

USD/JPY

We need to point out the new support level 113.62 with USD/JPY. This level had stopped the fall of the pair and after that pushed it up. Besides it, the large volume is concentrated within this mark. Given the strong uptrend, we should consider long positions.

Purchases can be opened after the continuation of the rise, but the move should be supported by the large volume, which will be a more precise signal for entering the market. A stop loss should be placed below the new support level. A potential of the deal is around 80-90 points.

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

USD/CAD

USD/CAD tested the support level 1.3185 and resumed its sharp surge, which is a good bullish signal. So now we should give preference to long positions. We can open purchases after a smooth downward adjustment of the price, in order to obtain a more profitable entry point. A stop loss should be placed under the level of support. A potential of the deal is more than 100 points.

The bottom line: purchases after a smooth correction of the pair down.

AUD/USD

AUD/USD tested the support level 0.7170, but failed to break it down and then showed a significant growth. The price is currently located inside the local consolidation between this mark and the previous level of resistance 0.7296. That’s why, we can consider new trading scenarios only after the confident exit of the pair from the local consolidation. Moreover, the breakout move must be supported by the large volume, which will be a more reliable signal for entering the market.

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

XAU/USD

Gold carried on falling yesterday. The drop was significant and abrupt. Besides it, we need to point out the resistance level 1212.80. Considering all these factors, we should give advantage to short positions with this instrument.

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

Sales can be opened after a smooth and small upward correction of the price, in order to obtain a more profitable entry point. A stop loss should be placed above the resistance level. A potential of the deal is more than 150 points.

The bottom line: short positions after the smooth upward adjustment of the price.

The mood of retail traders (trading against the "crowd"): the sentiment of the market totally confirms all our trading scenarios, which is a strong additional signal. As with AUD/USD, we should wait for the confident exit of the pair from the local consolidation and only after that we can consider new deals.

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

Stay out of the market: AUD/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.