EUR/USD showed an abrupt fall after the publishing of the result of the French presidential election. The price has broken down the level of support 1.0934 – 1.0943, but volume during the fall was small and it was not sharp, so the further continuation of this downward move is under the question.
Overall, the pair is in the consolidation and no fresh levels can’t be highlighted, so the situation is too much unclear now. That’s why it’s better to be out of the market now and wait for the returning of large volume to the market. Until that it is difficult to predict a further behavior.
The pound also fell down after the release of the results of election and the move was also on small volume. Unfortunately, we can’t highlight any fresh levels or zones that can be used in trading today. So we don’t have neither a good entry point, nor a place for a stop loss. In such a case we should stay out of the market and wait for the situation to become clearer.
Anyway, if you want to trade the pound, you should open only long positions now.
After the correction of the price to the level of support 112.24 – 112.31, the pair resumed its growing and broke out the local maximum. All these facts tell us that a continuation of the uptrend is the most possible scenario.
We can open long positions after a small correction of the price to approximately the level 112.95. A stop loss should be set below the yesterday’s minimum. A potential of the deal is around 80-90 pips.
The Canadian dollar grew up after the strong fall of the price at the end of last week. The move was smooth and on medium volume, but the price is trading near the local maximum/level of resistance 1.3785. If the price breaks this level out, we can consider opening long positions with a stop loss set below the breakout volumetric bar. A potential of the deal is up to 100 pips.
If the price continues falling, it’s better to stay out of the market and don’t trade against the trend.
AUD/USD bas broken down its previous local minimum. The move was on pretty high volume as for the Asian session. So we have a quite good situation for opening short positions.
But we should wait for a confirming signal – fall of the price on really large volume. The best scenario for us will be a smooth correction of the price and a resumption of the fall on large volume. A stop loss should be set above the level 0.7402. A potential of the fall is around 70-80 pips.
On Monday, XAU/USD showed a fall on average volume and the test of the support level 1226.00 – 1229.10. At the moment, the pair is trading within this zone, so the price did not show any active reaction to this level. This is a signal that the breakdown of this support is more likely to happen.
It should be noted that the level of 1226.00 – 1229.10 is a local minimum + it contains fairly large volume, which only increases its value for trading.
Therefore, a breakdown of this mark will be an excellent signal for the resumption of short positions on gold. The downward movement should be sharp and on increased volume to avoid a false breakdown. We can enter the market after a small correction to get a better price to enter. A stop loss should be put above a voluminous breakout bar. The potential of the fall is 120-130 points.
The sentiment: our deals for USD/JPY, USD/CAD, AUD/USD and gold are confirmed by the mood of the market. For the euro and the pound long positions should be in priority, but there are no good situations for trading right now.
The bottom line: gold still has the best situation for trading. USD/JPY and AUD/USD are also interesting instrument for trading today.