The Euro failed to resume its growth and the price continued trading in the local downward consolidation. Also we need to highlight the presence of the volume concentration in this range, so we can consider the accumulation of positions by big players there. The previous resistance is not actual anymore and given that the pair is moving on small volume, we are unable to highlight any new levels or zones.
Also, there will the ECB rate hike decision today, so the market will be volatile and there can be some unpredictable moves. That’s why the best choice will be just stay out of the market until the news and watch for the reaction of the price.
The situation for the pound remains the same: after the strong bearish momentum the price is trading in the consolidation. Volume has been small these days, so it is impossible to point out any new volume levels or zones. So that it is very difficult to predict further move of the price and the best decision will be just to skip this currency pair from our trading plan today. We can trade it after the appearance of large volume on the market or impulses.
USD/JPY broke down the local minimum and technical support level, but could not fix below it: after updating of the minimum, the price corrected upward. Also it is worth noting a new level of support 111.63, which is concentrated increased volume, which stopped the price fall.
Nevertheless, the price did not show a sharp rebound from this level + the yen is in the strong downward local trend, so it is advisable to consider the option with a further continuation of the price fall.
If the pair resumes falling and breaks down the level 111.63 on increased volume, this is a good signal for opening short positions. A stop loss should be placed just above the breakdown volume bar. The potential of the deal is about 90-100 points.
The Canadian dollar is trading in the local consolidation near the minimum/level of support 1.2595, which contains increased volume. So that our previous scenario of trading of USD/CAD remains the same: we should open short positions after the confident break down of the support on large volume. A stop loss should be placed above the breakout volume bar. A potential of the deal is around 100 pips.
AUD/USD has broken out the resistance but failed to fix above it. Now the price is trading in the local consolidation near the maximum. Also we need to highlight that this consolidation contains pretty large volume, so that it is advisable to point out the lower boundary of this range – 0.7910, which acts as a support.
Overall, everything else remains the same – there is a strong uptrend, so we should consider long positions. We can enter the market after the resumption of the growth on large volume. A stop loss should be placed below the support 0.7910 with a little margin. A potential of the deal is 80 pips.
The situation for gold remained the same as the price is trading in the consolidation in the volume resistance level 1240.40 – 1242.50. Huge volume is concentrated in this range, so even given the local uptrend, we can enter the market only after a confident breakout of this zone.
The move should be supported by large volume to avoid fake breakout. After the fixation of the price above the level 1242.50 we can enter the market and open long positions. A stop loss should be placed below the breakout volume bar. A potential of the deal is up to 120 pips.
The sentiment: despite the fact, that our scenarios for the yen, the Canadian and Australian dollars are confirmed, we need to get additional signals to be able to trade these currency pairs. Also the sentiment shows that long positions should be in priority for the Euro and the Pound.
The bottom line: the situation on the market has changed from good to tough as all pairs are trading in the consolidations. That’s why we need to wait for the appearance of large volume and exit of instruments from ranges.