EUR/USD continues trading in the local consolidation just below the volume resistance level 1.0934 – 1.0943. Nevertheless, on Tuesday the price showed a slight growth and is currently trading near this mark.
Also worth noting that the market is pretty “thin” this week, including because of the holiday on Monday in many European countries. Due to the low volume of trades, it is impossible to point out new levels or zones that could be used for trading.
As can be seen from the volumetric chart, large volume is concentrated in this range, so it can be assumed that the accumulation phase is taking place now. Therefore, after the price leaves the consolidation, the local trend is likely to start.
Also, the upward trend on this instrument remains relevant, which makes long positions a more priority scenario.
The euro trade scenario remains unchanged: we can open purchases only after a strong breakdown of resistance 1.0934 – 1.0943 on increased volume with further fixation of the price above it. A stop loss should be placed under the breakdown volumetric bar. The first target is 1.1000, the second is 1.1050.
After the smooth correction of the price, GBP/USD showed a strong bullish momentum and resumed its growth. So that, our scenario for trading the pound was totally executed. Due to our scenario the price should go up further without significant corrections.
Unfortunately, there is no good point for enter the market right now, so I advise to skip this instrument (if you are not in the position) and wait for some new opportunities.
The yen showed a correction after the confident growth of the price above the local maximum. It gives us a possibility to watch for the entry point for long positions. We can enter the market after a stoppage of this downward move and a resumption of the growth. If a growth is on increased volume, it will be more accurate signal. A stop loss should be placed below the level 111.40. A potential of the deal is around 110-120 pips.
USD/CAD has broken out the level of resistance and is trading above it now. This move was on fairly large volume, so it is a pretty good situation for purchases. It’s better to enter the market after the resumption of the growth, it will be a more accurate signal. A stop loss should be placed below the breakout volumetric bar. A potential of the deal is around 100 pips.
A situation for the Australian dollar remains the same, the price is trading in the consolidation on small volume. So that we can’t highlight any new level or zones. In such a situation the best decision will be to stay out of the market.
We need to highlight a new level of support for gold – 1252.60 – 1254.60 where pretty large volume is concentrated. Besides it, this is the local minimum. This fact only strengthens the meaning of this mark.
The level of resistance 1266.80 – 1267.80 is also relevant, but it is doubtful that the price will correct to this level.
Given the strong fall of the price on Monday and he presence of the large volume accumulation at the top of the chart, we should regard only short positions. We will be able to enter the market after the confident breakdown of the support on increased volume. A potential of the deal is around 100-120 pips.
The sentiment: a situation for gold remains unclear, but all technical factors are for short positions. All other scenarios are confirmed by the mood of the market.
The bottom line: USD/JPY and USD/CAD have the most interesting situations for trading now. The euro and gold also have a potential, but only after the breakout of resistance/support levels.