Daily Technical Forex Forecast 19.10.2017

EUR/USD

The Euro grew up yesterday, but the move was on average volume, so it did not change anything as the pair is still trading in the consolidation between two volume levels: the support 1.1680 – 1.1699 and the resistance 1.1870.

That’s why our previous scenario remains the same, we should consider new deals for this currency pair only after a sharp and sure exit of the price from the range. The breakout movement must be sharp and on large volume.

While the pair continues trading inside it, we should stay out of the market.

GBP/USD

The Pound tested the support level 1.3163, but could not break it down and now the pair is trading in the local consolidation, which contains huge volume accumulation. It is important to note that large volume was concentrated during the test of the level, so we can consider opening short positions only after its abrupt breakdown.

As for long positions, we can open them only after a breakout of the local maximum 1.3318.

USD/JPY

The yen showed a significant and rapid price increase on Wednesday and now it is trading near the resistance level of 113.20 – 113.42, in which large volume is concentrated and which is also the upper limit of the consolidation. It should be noted that the upward movement was on average volume, which was evenly distributed throughout the chart, so it is impossible to single out a particular level or zone.

Nevertheless, given the sharp price growth and the fact that it is located near the resistance level now, it is worth considering the scenario of breakdown of this mark and opening of long positions for the USD/JPY.
The breakout movement must be sharp and on increased volume, after fixing the price above resistance, we can open purchases. A stop loss should be placed above the breakout volume bar. The potential of the deal is more than 110-120 points.

USD/CAD

The price continued falling but is still trading in the consolidation between two volume levels: the support 1.2404 – 1.2428 and the resistance 1.2566 – 1.2580. So in general, nothing has changed for this currency pair and we should wait for the price to come out from the range in order to be able to consider new deals here.

AUD/USD

AUD/USD showed a smooth growth and is still located below the resistance level 0.7893, which is also a local maximum.Overall, the pair is trading in the consolidation, but given that AUD/USD is near its upper limit, we should consider the scenario of its breakout.

The move should be sharp and on large volume. A stop loss should be placed below the breakout volume bar. A potential of the deal is 70 pips.

XAU/USD

After the creation of the volume level 1283.70 – 1286.30, the price continued falling and is trading below this mark at the moment. Given this fact we can consider this level as the resistance from which we can deliberate short positions.

We can open sales after a smooth upward correction in order to get a better entry point. The move should be on small volume, it will ensure us that it is not a reversal signal or beginning of the strong growth. A stop loss should be placed above the level 1288.70. The target is 1262.00.

The sentiment: this indicator confirms our scenarios for the Yen and gold. For all other instruments it is a bit useless,, as they are trading in ranges.

The bottom line: pretty difficult situation as almost all instruments are in consolidations, that’s why we need to wait for the exit of prices from them, which will allow us to consider new deals.

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