The downward correction for the euro continued, but we should note that the move was smooth and on small volume, so our previous scenario of opening long positions remains the same.
Also we need to highlight the level of support 1.1309 – 1.1329, which contains large volume and is the cornerstone of trading this instrument.
We can open long positions after a strong rebound of the price from the support level. The move should be on increased volume and sharp. A stop loss should be placed below the support 1.1309. A potential of the deal is around 110-120 pips.
If the price breaks down the support, it cancels our scenario. But until that, long positions are in priority.
The situation for the pound is totally the same: the pair continued its correction and is trading near the volume support level 1.2897 – 1.2910. This level is the cornerstone of trading the pound as if the price breaks it down, our scenario will be canceled.
But anyway, there is a local uptrend + strong support so we should consider opening long positions.
We can enter the market after a test of the support and an abrupt rebound of the price after it. A growth of the price should be supported by increased volume. A stop loss should be placed below the level 1.2897 with a little margin. A potential of the growth is up to 120 pips.
After a correction of the price the pair showed a rapid growth but still could not break the local maximum. As consequence, it is trading in the small consolidation. Unfortunately, volume on the market has been small for 2 days, so we can’t highlight any fresh volume levels. Anyway, given the uptrend, we should consider opening long positions.
We can enter the market after the continuation of the growth on large volume. A stop loss should be set below either the beginning of the bullish momentum or the level 112.70. A potential of the growth is around 100 pips.
USD/CAD continued its fall and broke down the local boundary of the consolidation on increased volume. Also the move was pretty abrupt. These are good signs that the downtrend will continue. So now we should consider only short positions. We can enter the market after a smooth correction of the price to get a better point of enter. A stop loss should be placed a bit above the level 1.3015. A potential of the fall is more than 100 pips.
The situation for the Australian dollar remains the same: there are a strong global uptrend and a local sharp fall of the price. Volume is spread throughout the chart, so any new levels are impossible to point out.
So the best decision for his pair will be just to stay out of the market.
Gold showed a correction of the price and is trading in the level of resistance 1226.00 – 1228.70, which contains really large volume. The upward move was smooth and on small volume, so it does not cancel our previous scenario of opening short positions.
Sales can be opened after the rebound of the price from the resistance. The move down should be sharp and must be supported by large volume to insure us that the downtrend continues.
A stop loss should be placed above the resistance or the test of it (depends on what is higher). A potential of the fall is more than 120 pips.
The sentiment: all our deals are confirmed by the mood of the market, except the Australian dollar, where the situation is very difficult.
The bottom line: gold and the Canadian dollar are in priority today. The euro, the pound and the yen have pretty interesting scenarios too, but there we need to wait for additional signals.