The Euro grew up rapidly and broke out the previous level of resistance on large volume. Also it is necessary to point out the new level of support 1.1688 – 1.1704 that was created during the strong upward move. Besides it, the price has fixed above the previous maximum, so it is a good sign that it is not fake breakout.
That’s why we should give advantage to long positions. We can enter the market after a smooth correction of the price down to obtain a better entry point. A stop loss should be placed below the level 1.1688 with a little margin. A potential of the deal is 100-110 points.
After the publication of the FOMC statement, GBP/USD showed a rapid growth and, as a result, broke the previous local maximum. The upward movement was on large volume, which only increases the likelihood of the continuation of the price growth.
It is also necessary to note a new level of support 1.3088 – 1.3096, which was formed during a strong price movement up. Pretty large volume is concentrated in this level, which only increases its value for trading.
Considering all the above factors, it is worth giving priority to long positions. Purchases can be opened after a small and smooth correction of the price down to get a more profitable entry point and therefore a better risk/profit ratio.
A stop loss should be placed a little below the support level. The potential of the deal is about 100 points.
USD/JPY showed a strong bearish momentum from the level of resistance. The fall was very sharp and on extremely large volume. The new volume level of resistance was created 111.45 – 111.55.
Given all these facts, we should consider only short positions. We can enter the market after a small and smooth correction of the price up. A stop loss should be placed above the resistance with a little margin. A potential of the deal is up to 120 points.
The downtrend for USD/CAD continued as the price has broken down the lower boundary of the consolidation and fell down sharply. The move was supported by large volume. Also the new resistance was created, which contains pretty large volume too. It is 1.2476 – 1.2490. So that we should deliberate short positions as our main scenario.
We can enter the market after a small correction of the price up to get a better risk/profit ratio. A stop loss should be placed above the level 1.2527. A potential of the deal is 100 pips.
The Australian dollar has broken out the level of resistance/upper boundary of the consolidation and continued growing. The move was on large volume + the new support level 0.7967 – 0.7975 was created. This level contains large volume, that’s why it is pretty important for trading this currency pair.
Given all these facts + the presence of the global uptrend, we should consider opening only long positions. We should enter the market after a smooth downward correction of the price, because now there is no good entry point. A stop loss should be placed below the support with a little margin. A potential of the deal is 80-90 pips.
Gold resumed its growth after the FOMC statement and broke out the local maximum yesterday. The move was abrupt and on large volume, which is a great signal for the continuation of the uptrend. Besides it we need to note the new level of support 1254.10 – 1255.80, that contains large volume.
Given all the above factors, we should regard only long positions for gold. Purchases can be opened after a smooth correction of the price down to get an acceptable price for entering the market. A stop loss should be placed below the support with a little margin. A potential of the deal is more than 120 pips.
The sentiment: the situation remains the same – all our scenarios except gold one are confirmed by the mood fo the market. Anyway, the scenario for XAU/USD seems really good.
The bottom line: all our scenarios are pretty common as we need to wait for corrections to be able to enter the market. Overall, the situation of the market is very interesting for trading.