The euro continues trading in the consolidation under the resistance level 1.0681. Unfortunately, the situation for a trading is pretty complicated now, because there are neither volumetric, nor technical levels or zones from which we can enter the market. That’s why we should better stay out of the market and wait for new signals which will enable us to trade EUR/USD.
The pound is also trading in the consolidation, moreover there has been being small volume in the market for several days, so that it is impossible to allocate any new levels or zones. That’s why I advise to skip this instrument from the trading plan until big players and, subsequently, volume returns in the market.
Our scenario for the yen remains the same: we should consider opening only short positions. The resistance 109.21 – 109.38 is still actual for us. Also we need to highlight that the fall of the price was sharp and on increased volume.
We can enter the market and open short positions after a smooth correction of the price to the resistance. A stop loss should be placed above the level 109.40 (the test of the resistance). A potential of the fall is around 100 pips.
After the breakdown of the lower level of the consolidation, USD/CAD could not continue its fall due to the fall of the oil price and now this instrument is trading within the consolidation. Unfortunately, we can’t point out any new level or zone, because volume was very small at the end of the week.
Given that both currencies are weakened in this currency pair, it is very difficult to predict further price movement. The best advice is to be out of the market now and wait for the clearer situation.
For the Australian dollar is worth noting the support level of 0.7660 – 0.7672, in which large volume is concentrated and which keeps the price above. It is also necessary to highlight a strong and sharp growth of the price on large volume, which only increases the likelihood of continuing of the uptrend.
Taking these facts into account, it is worth considering long positions as a priority scenario for trading AUD/USD. Longs should be opened after the price raises from the support level on increased volume, which will be an indicator of the strength of the bulls and their power to continue the further price movement upwards. A stop loss should be set below the level 0.7552. The target is 0.7670.
Gold had a holiday on Friday, so our previous scenario of opening long positions is still actual. Also we need to highlight the level of support – 1281.00 – 1283.20, that has been already tested, after which the price rebounded back.
The presence of the strong support and uptrend are additional signals that confirm our scenario. We can open long positions after the breakout of the local maximum. A stop loss should be set below the support level. A potential of the deal is around 150 pips.
The bottom line: USD/JPY, AUD/USD and XAU/USD are the most attractive instruments for trading now. The euro, the pound and the Canadian dollar are in consolidations now, so it’s better to wait for new signals before trading these currencies.