The euro resumed its uptrend and is testing the level of resistance 1.1231 – 1.1243 now. The move was caused by the FOMC meeting minutes publishing and the growth of the price was on increased volume. So it seems like bulls regained the advantage.
The breakout of the resistance will be a great signal for opening long positions. The move should be on increased volume and the price should be fixed above it. A stop loss should be placed below the breakout volumetric bar. A potential of the deal is 80-90 pips.
The pound is still trading in the consolidation, so our previous scenario remains the same: we can trade GBP/USD only after the breakout of the consolidation. The move must be on large volume. Until that we should stay out of the market.
The yen failed to continue growing after the breakout of the resistance and after a publishing of FOMC Meeting Minutes fell down on large volume. The new resistance level was created 111.66 – 111.85.
So we can to trade from this level, if the price starts falling on large volume. It will be a good signal for opening sales. A stop loss should be set at 112.15, a potential of the fall is around 120 pips.
USD/CAD fell down sharply after the news regarding oil. The move was on really large volume and the new level of resistance was created. It’s 1.3433 – 1.3455.
Given all these facts we should consider opening short positions for this instrument. We can enter the market after a smooth correction of the price to the level. A stop loss should be placed above the level 1.3482. A potential of the fall is around 100-110 pips.
Despite the abrupt growth of the price, the situation for the Australian dollar remains complicated: we do not have a good place for a stop loss as volume on the market is pretty low. So I advise to stay out of the market until the appearance large volume on the market.
After the release of the FOMC meeting minutes, gold showed a strong growth on high volume. In addition, the price upward move was supported by ASK deltas, that tells that buyers had an advantage during the move up. The pair continues trading in the consolidation near the local maximum.
The resistance level 1261.10 – 1263.20 remains relevant and is the cornerstone in the gold trading.
Also it is worth noting the presence of a strong accumulation of volume in the current range, so it will be possible to trade gold only after the price comes out of this consolidation.
Thus, it is necessary to wait for the breakdown of the boundaries of consolidation. Given the presence of an uptrend, longs look more a priority.
We can open purchases after the breakdown of the level 1261.10 – 1263.20 on increased volume with further fixation of the price above this mark.
A stop loss should be placed just below the breakdown volumetric bar. The growth potential is about 120 points.
The sentiment: our deals for the euro, the yen and the Canadian dollar are confirmed by the mood of the market. Gold has 50/50 situation, so we need to wait for the breakout of the boundaries of the consolidation.
The bottom line: deals for EUR/USD, USD/JPY, USD/CAD are in priority for today. Gold is also a pretty interesting instrument for trading.