The euro is still trading in the local consolidation near the local minimum. Unfortunately, volume on the market is very small, so it is impossible to point out any new volume level or zone. So now there is no a good situation for trading and it is hard to predict further move of the price.
We need to wait for the appearance of large volume on the market and creation of new level or zone, which will point us the future direction of the price. Until that, it is better to stay out of the market.
Nothing has changed for the pound, as the price is still trading in the local consolidation a little bit above the level of support 1.2959. The most possible scenario is the breakdown of this level and resumption of the fall. The move must be sharp and supported by large volume, it will be more accurate signal for short positions. A stop loss should be placed above the breakdown volume bar. A potential of the deal is around 120 pips.
USD/JPY confidently broke the previous support level/local minimum and continued its decline. The breakdown was sharp and on a large scale, which only strengthens its significance. A new resistance level 109.37 – 109.47 was also formed, in which large volume is concentrated. Thus, the global downtrend for this currency pair remains relevant, therefore, it is worth giving preference to short positions on the yen.
We can open short positions after a smooth correction of the price to the resistance level in order to obtain a more advantageous entry point and, as a consequence, a better risk/profit ratio. Correction should be smooth and on a small amount. A stop loss should be placed above the volume breakout movement – 109.67. The potential of the deal is more than 100 points.
After the sharp fall of the price, USD/CAD showed an abrupt growth on pretty large volume, which is a good bullish signal. Unfortunately, volume was spread throughout the chart, so we can’t highlight any new level or zone, but anyway our previous scenario of opening long positions remains the same.
We can enter the market after a little downward correction and the resumption of the fall on increased volume. A stop loss should be placed below the level 1.2670. A potential of the deal is around 100 pips.
Despite the pretty sharp fall of the price yesterday, volume on the market is still small, so we should be extremely careful trading AUD/USD.
Anyway, given the strong local downtrend, we should give advantage to short positions. We can enter the market after the strong bearish momentum either from the current level, or after a small upward correction. A stop loss should be placed above the beginning of the strong fall. A potential of the deal is 70-80 pips.
The uptrend for gold continued as the price grew up strongly and on increased volume yesterday. Also the level of support 1270.80 – 1273.20 remains relevant, so all factors point us that we should consider long positions.
Unfortunately, we enter the market right now, because the price is too far away from the support, so a stop loss will be too big. That’s why we need to wait for the smooth downward correction of the price and after its stoppage we can open long positions. A stop loss should be placed below the support 1270.80. A potential of the deal is more than 130 pips.
The sentiment: our scenarios for the pound, the yen, the Canadian dollar and gold are confirmed by the mood of the market. For the euro and Australian dollar long positions should be in priority, but technical factors don’t confirm it.
The bottom line: USD/JPY and XAU/USD should be in priority today as they have the best situations for trading. Other pairs can be traded too, but only after strong additional signals.