EUR/USD showed a staggering growth after the interest rate decision and the ECB press conference. The movement was sharp and strong, and was supported by large volume. It is also necessary to note the new level of support that was formed during this growth. This is the level of 1.1548 – 1.1570. In this level, large volume is concentrated + the price was fixed here, after which the growth continued.
In general, it can be argued that the upward trend for the euro continues.
Given this fact + the presence of the strong and fresh support, it is worth giving preference to long positions for the pair EUR/USD.
We can enter the market after a small, smooth correction of the price down to get a more profitable entry point and, as a result, a better risk/profit ratio. The price fall should be on small volume. A stop loss should be placed under the level 1.1538. The potential of growth is about 110-120 points.
The situation for the pound remains the same as the price is trading on small volume. Moreover, this volume is spread throughout the chart, so we are unable to point out any news levels or zones. Besides it the price showed move in both directions.
Given all these facts, the best decision will be just to stay out of the market for the pound and wait for the beginning of the trend or/and the creation of new strong levels that can be used in trading.
The yen has testes the level of support 111.63 one more time but failed to break it after which the price rebounded up. The fall of the pair was sharp and on large volume, at the same time the rebound was smooth and on small volume, so that it is a good sign that the yen is willing to break down the support and continue its fall.
We can enter the market if the price breaks down the level 111.63 confidently and is fixed below it. The move should be supported by large volume too. A stop loss should be placed above the breakdown volume bar. A potential of the deal is up to 100 points.
The pair showed a fake breakdown after which it rebounded back and is trading in the small consolidation. Also we need to highlight the new level of support that was created after this move. It is 1.2550. This level contains pretty large volume that stopped the fall of the price.
Anyway, given the global downtrend, we should consider short positions as a priority scenario.
We can enter the market after the breakdown of the 1.2550 and the continuation of the fall/a fixation of the price below it. The move should be on increased/large volume. A stop loss should be placed above the breakdown volume bar. A potential of the fall is more than 100 pips.
The Australian dollar fell down after trading in the local consolidation near the maximum 0.7561. The fall was pretty sharp and on increased volume. Also, the level 0.7561 is the higher boundary of the local range, which contains really large volume. So that we can resume considering long positions only after the confident breakout of this level on increased volume. A stop loss should be placed below the breakout volume bar. A potential of the deal is 80 pips.
If the price continues correcting down, we should stay out of the market.
Gold grew up strongly and broke out the previous level of resistance. The move was sharp and on large volume, which is a great signal for the continuation of the local uptrend. We should point out the new level of support 1238.30 – 1239.70, where large volume is concentrated. Exactly from this level the bullish impulse began.
Given all these factors we should consider only long positions. We can enter the market after a smooth correction of the price down on small volume to obtain a better price for enter. A stop loss should be placed a bit below the support level. A potential of the growth is 100-110 points.
The sentiment: almost all our scenarios are confirmed by the mood of the market. Only the situation for the yen and gold is a bit complicated, but given all technical factors, there are good scenarios for trading these instruments.
The bottom line: there are a plenty of potentially good scenarios for trading, especially for the euro, the yen, the Canadian dollar and gold.