Daily Technical Forex Forecast 12.10.2017

EUR/USD

EUR/USD continued growing and broke out the previous upper limit of the consolidation. Now the price is trading above it. We should note that the breakout move was on increased volume, but it was spread throughout the chart, so we can’t point out any specific volume level. Anyway, given all other facts above we should consider opening long positions.

Unfortunately, there is no a good entry point at the moment as we don’t have a good place for a stop loss. That’s why we should wait for a smooth downward correction (optionally) and a resumption of the growth on large volume, so will be able to place a stop loss below the beginning of such move. A potential of the deal is 100 pips.

GBP/USD

The price has broken out the previous resistance, but the move was smooth and on small volume, so we can’t trade this breakout at the moment. But on the other hand, this movement points us that buyers are dominating the market and we, of course, should give preference to long positions.

The scenario is similar to the one for the euro: we need to wait for a continuation of the growth on large volume, so we can consider it as a strong bullish signal and put a stop loss below it. A potential of the deal is up to 140 pips.

USD/JPY

Nothing has changed for the Yen as the price is still trading in the consolidation, so that we need to wait for the exit of the pair from it in order to be able to consider new deals for this currency pair.

USD/CAD

USD/CAD fell down sharply yesterday, but the move was on small volume. Anyway, given that the price is trading near the lower boundary of the range/support 1.2404 – 1.2428, we should consider the scenario of the breakdown of this mark.

If the price breaks down the support on large volume, we can open short positions. A stop loss should be placed above the breakdown volume bar. A potential of the deal is more than 120 pips.

AUD/USD

The price grew up, but is still trading in the consolidation between the support 0.7744 and the resistance 0.7868, that’s why our previous scenario remains the same: we can enter the market only after a confident exit of the price from the range on large volume.

While the pair is trading in the consolidation, we should stay out of the market.

XAU/USD

After a slight correction from the resistance level of 1291.60 – 1294.20, gold resumed its growth and now the price is testing this mark. It should be noted that the price growth was sharp and on large volume, which is an excellent bullish signal. Thus, the most likely option is a breakdown of the resistance and further price growth, so long positions are in the priority for gold.

Sales should be opened after a confident breakdown of the level of 1291.60 – 1294.20 on increased/large volume. This is a necessary condition to avoid false movement and get a more accurate entry point. A stop loss should be placed under the volume breakout bar. The deal’s potential is more than 150 points.

The sentiment: our scenarios for EUR/USD, GBP/USD and USD/CAD are confirmed. For gold the indicator shows that short positions should be in priority, but given all technical factors, we must give preference to long positions.

The bottom line: the Euro and the Pound should be in priority today, gold and the Canadian dollar also have quite interesting scenarios for trading.

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