Daily Technical Forex Forecast 04.10.2017
EUR/USD
The price could not continue its fall and returned trading within the previous consolidation 1.1720 – 1.1823. It is worth noting that the price growth was smooth and on small volume. It is also necessary to highlight that very large volume is concentrated in this range, so it can be assumed that big players are gaining ground in this consolidation.
Considering this factor and the fact that due to the small volume of the market it is not possible to allocate a specific volume level, the best option for trading will be waiting for the exit of the price from this range. This signal will be a good indication of further market makers’ plans.
A breakout move should be sharp and on increased/large volume – this will be a more accurate signal for entry into the market. A stop loss should be placed below/above a volume breakdown bar. The potential of long positions is 110 points, short positions – 100 points.
GBP/USD
The Pound started trading in the local consolidation once again. We should note that pretty large volume is concentrated in this range, so the best decision is to wait for the exit of the price from it. The move must be sharp and on large volume, it will be a more accurate signal.
Given a pretty abrupt fall of the price and presence of large volume accumulations at the top of the chart, we should give preference to short positions.
USD/JPY
The Yen has tested the level of resistance 113.20 one more time but failed to break it out and is still trading in the local consolidation a bit below this mark. We should note that the fall of the price was on small volume, so that this move should not be regarded as a reversal signal.
That’s why we still should give advantage to long positions. We can enter the market after a sure breakout of the resistance on large volume. A stop loss should be placed below the breakout volume bar. A potential of the deal is 120 pips.
USD/CAD
The pair corrected down yesterday, but the move was on very small volume, so that we can’t consider it as a reversal signal, so that long positions are still in priority at the moment. We can enter the market after a stoppage of the correction and a resumption of the growth. A stop loss should be placed below the support 1.2404 – 1.2428. A potential of the deal is 110-120 pips.
AUD/USD
The price is still trading in the local consolidation, where large volume is concentrated. Also we need to point out that volume on the market is very small, so we can’t highlight any new volume level.
That’s why the best decision will be just to wait until the price comes out from the range and only after that we can consider opening new deals.
XAU/USD
Gold stopped its fall and started trading in the local consolidation. A pretty large volume accumulation is located in this range, so it is better to trade this instrument after a confident exit of the price from it.
Given the local downtrend we should give preference to short positions. We can enter the market after a sure breakdown of the local minimum. A stop loss should be placed above the breakdown bar. A potential of the fall is 120-130 pips.
The sentiment: this indicator confirms our scenario for the Yen, while the mood of the market for almost all other instruments (except CAD) is equal, which makes trading these pairs tougher.
The bottom line: the Yen is still in priority, for all other instruments we also have scenarios, but it is necessary to get additional signals to be able to trade them.
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