After a large gap, EUR/USD continued its upward movement, moreover, on Tuesday the growth of the price was on very large volume. It is necessary to point out a fresh level of support 1.0889 – 1.0896, in which a fairly large volume is concentrated. In addition, a strong bullish impulse began from this level and the price was fixed above the small local consolidation that was formed after the weekend.
Now this consolidation and volume accumulated in it support the price.
In this situation, the most appropriate solution is to open long positions. We can enter the market either from the current level or after a slight smooth correction of the price, which will enable us to make a deal with a more favorable risk/profit ratio. The fall should be smooth, without sharp impulses down. A stop loss should be placed under the support level 1.0889 – 1.0896 with a small margin. The target is 1.1000.
The pound also showed a growth of the price on medium volume, but overall, it is still trading in the consolidation between the support 1.2745 – 1.2773 and the technical resistance 1.2852.
Now the price is near the upper boundary of this range, which allows us to highlight the scenario of the breakout of this level. In such case we can consider opening long positions with a stop loss set below the breakout volumetric bar. The global target is the level 1.3000.
Our previous scenario for the yen was confirmed and the price grew up strongly. Upward move was supported by pretty large volume. We need to point out the new level of support 110.64 – 110.75 which contains huge scale and enables us to open long positions after the test of this level and a rebound of the price on increased volume. It is necessary to confirm the power of buyers. A stop loss should be placed below the support with a little margin. A potential of the deal is around 70-80 pips.
It is necessary to highlight a new level of resistance for USD/CAD – 1.3601 – 1.3625 which stopped the growth of the price. This level also contains large volume, so its breakout will be a good signal for opening long positions. Such a move should be on increased volume. A stop loss should be placed below the breakout volumetric bar. A potential of the deal is about 100 pips.
Unfortunately, the situation for the Australian dollar remains the same: the pair is trading in the consolidation on small volume, so it’s impossible to highlight any new volumetric levels or zones.
That’s why the best decision for this instrument is to stay out of the market.
Gold continued falling on pretty large volume. We need to highlight the new level of resistance 1266.20 – 1269.00. This level contains huge volume and was the previous local minimum.
So that it will be a good place for a stop loss for a short position for gold. We can enter the market after a smooth correction of the price and a resuming of the fall. It will be a good bearish signal. A stop loss should be placed above the level of resistance. A potential of the fall is around 110-120 pips.
The sentiment: all our deals except gold are confirmed. Most probably that the sentiment for the precious metal has not reacted to the change of the price yet, but I still think that it is a good deal.
The bottom line: at last we have several interesting situations for trading, especially the euro, the pound, the yen and the gold.