Despite the strong growth of the price on increased volume on Monday, the pair is still trading in the global consolidation. So basically, nothing has changed and we should trade this instrument only after the exit of the price form the range.
The breakout should be supported by increased volume + the move must be sharp, only after these we will be able to enter the market. Until the price is trading in the global consolidation, it is too risky to trade it.
GBP/USD is still trading in the local consolidation a little bit above the level of support 1.2846, in which large volume is concentrated. Moreover, the range also contains large volume. So the exit of the price from it will be a great signal for entering the market.
Of course, given the global downtrend, we should give preference to short positions.
We can enter the market after a strong bearish momentum and breakdown of the support 1.2846 on large volume. A stop loss should be placed above the breakdown volume bar. A potential of the deal is 120 points.
The price had tested the level of support 108.63 – 108.71 and rebounded up sharply. We should note that despite the strong growth, this move was on small volume, so we can’t consider it as a reversal movement.
So that our previous scenario remains the same: after the sure breakdown of the support on large volume we can open short positions for USD/JPY. A stop loss should be placed above the breakdown volume bar. A potential of the deal is around 100-110 pips.
The pair continued falling, but the move was smooth and on average volume, so we can’t point out any new volume level or zone. Anyway, given the strong bearish impulse on Friday and local downtrend, we should consider short positions. We can enter the market after the resumption of the fall on large volume. A stop loss should be placed above the level 1.2607. A potential of the deal is more than 100 pips.
The Australian dollar is trading in the local consolidation near the local maximum. Volume on the market is pretty small, so we can’t point out any new volume level or zone. The only possible and pretty good scenario is the breakout of the local maximum on large volume that will give us a good opportunity to open long positions. A stop loss should be placed below the breakout volume bar. A potential of the deal is around 60 pips.
Despite a fairly rapid price growth on Monday, XAU/USD is still trading in the consolidation between two levels: the resistance 1296.30 – 1300.50 and the support 1267.70 – 1269.90. Also it is worth noting the presence of an uptrend on this instrument, as well as the fact that the price is trading near the resistance. Thus, breakdown of the level of 1296.30 – 1300.50 looks like the most likely option for the continuation of the movement of gold.
If the price breaks the resistance level on large volume and then the pair fixes above this level/continues its rapid growth, we can consider the option of opening long positions on this instrument. A stop loss should be placed under the breakout volume bar. The potential of the deal is about 130-140 points.
The sentiment: almost all our deals are confirmed, only for the euro the situation is tough as the price is trading in the consolidation.
The bottom line: unfortunately, there are no good entry point right now so we need to wait for strong confirming signals to be able to enter the market.