After the test of the support and a price growth, the euro corrected down and is trading near the volumetric level 1.0686 – 1.0700 now. The fall of the price was quite sharp, but on small volume, which has not provided an opportunity to talk about the reversal of the trend yet. It is very important to wait for the reaction of the price on the support and only after that it will be possible to enter the market. Nevertheless, given the strong uptrend and the volume concentration at the bottom of the chart, long positions look more promising.
As it was said above, it is possible to open longs only after a test of the support and a rebound of the price on increased volume. If this movement is sharp, it will only strengthen the signal for purchases. A stop loss should be placed below the level of 1.0686 – 1.0700. The goal is a local maximum 1.0772. Thus, the risk/profit ratio for this deal is approximately 1 to 2, which is a good indicator for us.
As for sales, they should be considered only in case of a strong volumetric price fall, but still, purchases are a more interesting option.
The pound is trading in the consolidation near its level of support 1.2745 – 1.2773. Pretty large volume is concentrated in this level, which makes it crucial for trading GBP/USD.
The strong growth of the price on incredibly large volume and the fixation of the price above the support level make opening long positions more possible scenario. We can enter the market after the sharp rebound of the price from the level 1.2745 – 1.2773 on medium or large volume. A stop loss should be set below the support. The target is the local maximum.
Also we can search for entry point after the growth of the price from the current level and the breakout of the consolidation on large volume.
The yen has broken out the level of resistance and now is trading above it. Notable, that the breakout was on increased volume, but smooth. Also we need to highlight the level of resistance 109.67 – 109.84, which is the cornerstone of trading USD/JPY. We can enter the market only after the reaction of the price on this level, moreover, we are able to trade in two ways, both up and down. The most important thing – the breakout or rebound should be sharp and on large volume.
The growth of USD/CAD was stopped, so the price remains trading in the consolidation. Volume concentrated in the growth is small, so it’s difficult to point out any levels or zones for trading the Canadian dollar.
The scenario remains the same – waiting for a return of big players and volume to the market.
The situation for AUD/USD is difficult to understand, because the price rebounded back after the breakout of the support level and is trading in the wide consolidation now. Unfortunately, it is not the best instrument to trade now, so it’s better to skip it.
Gold failed to continue growing after the creation of the new support level 1276.80 – 1279.00. The price is trading in the consolidation on this level. Also we need to notice that the price can’t break it down too, so it seems like big player are obtaining positions.
In such situation we should consider opening either short or long positions dependently on the new reaction of the price on this level. In both situations it is necessary to see a sharp move of the price on large volume.
The sentiment: this indicator shows us that for EUR, GBP, CAD and gold long positions should be in priority, while short positions are good for JPY and AUD.
The bottom line: the euro and the pound are in my pick for today, for the yen and gold we need to wait for additional signals.