Due to fundamental factors, the euro showed the strong bearish momentum on large volume. But it is important to point out, that volume was concentrated at the bottom of this move and the new support was created – 1.1309 – 1.1329. After that the price grew up strongly and absorbed the previous fall.
Given the uptrend and all the factors mentioned above, we should consider only purchases now.
We can enter the market after the smooth correction of the price to the level of support to obtain a good entry point.
A correction should be on small volume. A stop loss should be placed just below the level 1.1309. A potential of the growth is around 100-110 pips.
GBP/USD also showed a mad growth on very large volume. The movement was strong and sharp, as a consequence, the previous level of resistance was surely broken out.
It should also be noted that large volume was concentrated at the top of this bullish momentum, which acts as a resistance now. This is the level 1.2948 – 1.2969.
We must note that the price did not show a sharp rebound after the appearance of this level, which is a good signal for further breakdown of this mark.
Given this strong and voluminous upward movement, it is worth considering exceptionally long positions.
We can open purchases after the breakdown of resistance 1.2948 – 1.2969. The breakdown should be sharp and on increased volume to avoid false movements.
After the fixation of the price above this mark, we enter the market. A stop loss should be placed just below the breakdown volume bar. The growth potential is about 80-90 points.
The yen is once again trading in the local consolidation now. Yes, we have a strong uptrend and the level of support 111.49 – 111.57 is still actual, so long positions should be in priority.
But given the whole situation of the market and the weakening of the US dollar, it is very risky to buy USD/JPY. So I advise you to skip this instrument from your trading plan today and wait for more clearer situation.
After the breakout of the support, USD/CAD continued confident fall. The move of the price was supported by pretty large volume + the oil price also grew up, so all factors are for further continuation of the downtrend.
Besides it we must highlight the level of resistance 1.3079 – 1.3110 which was created yesterday and contains pretty large volume.
In such case we should consider only short positions.
We can enter the market after a smooth correction of the price to get a better entry point. A stop loss should be placed above the resistance. A potential of the fall is more than 100 pips.
The Australian dollar at last has broken out the resistance and now is trading above the consolidation. The breakout was sharp ans supported by huge volume yesterday, which is a good sign for further continuation of the growth.
We can enter the market after a small correction of the price to get an acceptable entry point. A stop loss should be placed below the breakout volume bar. A potential of the deal is around 80-90 pips.
Gold continued trading in the consolidation even despite the fall of the US dollar against all other majors. We should note the presence of the strong accumulation of volume inside this range, so after the breakout of the boundaries of it, we, most probably, will see a beginning of a local trend.
Until that we can’t trade gold, so it’s better to stay out of the market.
Anyway, I expect a growth of the price and the breakout of the resistance 1258.00.
The sentiment: the mood of the market confirms all our scenario. For gold it points the advantage of long positions, but we still need to wait for the breakout of the resistance.
The bottom line: we have 4 good instruments for trading now: EUR, GBP, CAD, AUD. We just need to wait for good entry points and then trade these pairs.