The Euro grew up strongly on Friday, but the price is still trading in the consolidation between 2 levels: the support 1.1406 and the resistance 1.1470. The upward move was support by large volume + the price is trading near the resistance, so the possibility of the continuation of the growth is pretty high.
We can enter the market after the confident breakout of the resistance on large volume and after the fixation of the price above it long positions can be opened. A stop loss should be placed below the breakout volume bar. A potential of the deal is around 90 pips.
If the price remains trading in the range, we should stay out of the market.
The uptrend for the pound continues as the price grew up sharply and on really large volume. Also we need to point out the new level of support 1.3060 – 1.3076, which contains large volume.
Given all these factors, we should consider only long positions. We can enter the market after the smooth correction of the price to the level of support and a resumption of the growth. A stop loss should be placed below the level 1.3060 with a little margin. A potential of the growth is more than 100 pips.
After the release of the bad macroeconomic data in the USA, USD/JPY fell down sharply and on large volume. Such a bearish move is a good sign for further fall of the price.
Besides it we need to point out the new level of support 112.33, which contains pretty huge volume and stopped the move of the price down.
So we can open short positions only after the confident breakdown of the support on large volume. A stop loss should be placed above the breakdown volume bar. A potential of the fall is 110-120 pips.
USD/CAD continued falling down, moreover, the move was support by increased volume. Unfortunately, volume was spread throughout the fall, so we are unable to point out fresh volume levels or zones.
Given the strong global downtrend supported by increased volume, we should consider opening only short positions.
The best scenario for entering the market will be a smooth correction of the price up to, approximately, the level 1.2710, after which we can open short positions. A stop loss should be placed above the previous local consolidation 1.2770. A potential of the fall is more than 100 pips.
The Australian dollar grew up on large volume, so the uptrend continues and it is pretty strong. So now we should consider opening only long positions. Besides it, we need to highlight the new level of support 0.7783 – 0.7793. This level contains pretty large volume + it was created on Friday, so it’s fresh.
We can open long positions after the smooth correction of the price to the level of support. The correction should be on small volume. A stop loss should be placed below the level 0.7783. A potential of the deal is 80 pips.
Gold has broken out the previous level of resistance on large volume and the price was fixed above this level. The growth of the price was abrupt, so it is a good sign for further upward move. Also we need to point out the level of resistance 1230.00 – 1231.40, which has stopped the growth. Besides it, this level contains large volume.
So we can open long positions only after the breakout of the resistance on large volume and the continuation of the growth. The move should be sharp. A stop loss should be placed below the breakout volume bar. A potential of the growth is 140 pips.
The sentiment: our scenarios for the euro, pound, Canadian and Australian dollars are confirmed by the mood of the market. According to the yen, the situation is 50-50, on gold this indicator shows the advantage of sales. Therefore, these 2 tools should be traded more accurately.
The bottom line: there are a plenty of good scenarios for trading on the market, so we need to wait for good entry points and trade, trade, trade.