The Euro had broken down the local minimum, but failed to continue falling and rebounded up sharply, so that the fall was totally absorbed by the price. The move was on average volume, so we are unable to point out any new volume level or zone.
Given this fact, the situation looks pretty tough for trading. That’s why we need to wait for the appearance of large volume on the market and new impulses, which will point us the mood of the market. But now, the price is trading in the local consolidation, so it is better to wait for new trading signals now.
The situation for the Pound remains the same as the price is trading in the local consolidation near the level of support 1.2959. So our previous scenario of opening short positions after a sure breakdown of the level is still relevant. The move should be on large volume to insure us from fake breakout. A stop loss should be placed above the breakdown volume bar. A potential of the deal is 120 pips.
It is necessary to point out the new level of support for the Yen, it is 109.66 – 109.74. This level contains pretty large volume + has stopped the fall of the price. But still, given the downtrend, we should consider short positions after the breakdown of the support. The move should be sharp and supported by large volume. A stop loss should be placed above the breakdown volume bar. A potential of the deal is around 100-110 pips.
The uptrend for USD/CAD continues as the price grew up yesterday, so obviously that we should give preference to long positions. Unfortunately, there is no a good place for setting a stop loss, so we need to wait for a strong bullish momentum and then we can enter the market and open long positions. A stop loss should be placed below the beginning of the abrupt move. A potential of the deal is more than 100 pips.
The situation for the Australian dollar is similar to USD/CAD as there is a strong trend, but we don’t have a good place for putting a stop loss. Anyway, we still should give preference to short positions, but we can enter the market after the resumption of the fall on large volume. It will give us a place for a stop loss, which we can place above the beginning of the abrupt move. A potential of the deal is 90-100 pips.
Gold continued its rapid growth after the rebound from the support level and yesterday broke through the previous resistance level/the upper limit of the consolidation. The breakout movement was sharp and on increased volume, which is an excellent bullish signal. Also it is worth noting a new level of support 1270.80 – 1273.20, where large volume is concentrated, after the formation of which, the price continued upward movement.
In addition, it should be noted that this movement means the continuation of the global upward trend for gold.
Thus, it is worth giving preference to long positions for gold. We can open purchases after the price growth on increased volume, which will confirm the intention of buyers to push the price further. It is desirable that the move will be after a slight correction for a more advantageous entry point. A stop loss should be placed a little below the support level. The growth potential is about 130-140 points.
The sentiment: our scenarios for the pound, the yen, the Australian dollar and gold are confirmed. The sentiment for the Euro shows the advantage of sellers, so we should trade against them, but still the situation for this currency pair is tough. For the Canadian dollar the situation is opposite, but there is a strong uptrend, so long positions should be in priority.
The bottom line: the situation of the market is ambiguous, so it is better to be careful. Trade only after a strong confirming signals like sharp impulses or breakouts of volume levels.