As expected, after the strong growth of the price on increased volume on Friday, EUR/USD continued its growth and broke through resistance level 1.1470. The breakout was smooth, but after a fixation of the price above this mark, the pair showed a significant growth on increased volume + large ASK deltas, which means the domination of buyers.
In addition, it is necessary to point out the new level of support 1.1465, in which quite large volume is concentrated, after which the price continued to move upwards.
Given all the factors, it is necessary to consider exceptionally long positions on the euro now. We can open purchases after a smooth correction of the price, approximately, to the level 1.1500 – 1.1504. The price movement down should be on small volume. A stop loss should be placed a little below the support level 1.1465. The growth potential is about 80 points.
The price showed a downward correction of the price and broke down the support 1.3060 – 1.3076. The breakout was smooth and on small volume, after which the pair grew up strongly. So that our previous scenario of opening long positions remains the same.
Given that both correction and growth was on small volume, we can’t highlight any new volume levels.
We can enter the market after the resumption of the growth on increased volume. It will be a great signal of the continuation of the local uptrend for the pound. A stop loss should be placed below the correction 1.3045. A potential of the growth is around 100 pips.
The price has broken down the level of support 112.33 and now is trading below this mark. The breakdown was confident and supported by increased volume. Given the local downtrend and all the factors above, we should consider short positions.
We can enter the market after a fixation of the price below the level (4-5 hours) and a continuation of the fall. A stop loss should be placed above the beginning of the breakdown move 112.63. A potential of the fall is more than 110-120 pips.
The price corrected up and continued its fall. Both moves were on small volume, so we are unable to point out any new volume levels or zones.
Anyway, the downtrend for USD/CAD continues, so we should consider only short positions. If the price resumes falling on large volume, we can enter the market and place a stop loss above the yesterday’s correction 1.2701. A potential of the deal is more than 100 pips.
Our previous scenario for the Australian dollar was totally confirmed as the price corrected to the support 0.7783 – 0.7793 and grew up strongly. The upward move was sharp and supported by large volume, which are good signals for the continuation of the global uptrend for AUD/USD.
Of course, in such case we should consider exceptionally long positions.
We can enter the market after a smooth correction of the price to obtain a better entry point. A stop loss should be placed below the level 0.7783. A potential of the deal is around 100 pips.
Gold has broken out the level of resistance and fixed above it, but unfortunately, the move was pretty smooth and on average volume, so we are unable to trade with movement. But anyway, it is a good signal that the price is willing to continue growing.
That’s why we should deliberate long positions as a priority scenario. We can enter the market after the resumption of the growth on increased volume. A stop loss should be placed below the level 1232.50 (local volume consolidation). A potential of the deal is 120 pips.
The sentiment: this indicator confirms all our scenario except USD/JPY and XAU/USD. So I advise you to be a bit more careful trading these 2 instruments.
The bottom line: EUR/USD and AUD/USD are in priority today. We should trade them in the case of good entry points. GBP/USD and USD/CAD need to show strong additional signals and only after that we can trade them.