The uptrend for the Euro continued as the pair grew up on Monday. The move was on average volume, but contained large ASK deltas, which is a good bullish signal. Also we need to point out the level 1.1917, in which large volume is concentrated + there was a little local consolidation after which the price continued its growth.
Given all these facts, we should consider only long positions for the Euro. It is better to enter the market after a smooth downward correction of the price in order to obtain profitable entry point. A stop loss should be placed below the level of support with a little margin. A potential of the deal is 100 pips.
The Pound also grew up yesterday, but the move was not supported even by average volume, so that we can’t point out any new volume level or zone. Moreover, there is a strong downtrend for this currency pair, that’s why it is very dangerous to open long positions, besides it we don’t have a good place for a stop loss.
Given all these facts, it is obviously that we should skip this instrument from today’s trading plan and wait for the appearance of large volume on the market and creation of new levels.
The Yen has tested the support level 108.63 – 108.71, but failed to break it out and is trading a little bit above it. The fall of the price as rapid and on large volume and the pair did not show any significant reaction on the level, so the possibility of the breakdown is pretty high.
The breakdown move should be supported by increased or large volume and after the fixation of the price below the support, we can enter the market. A stop loss should be placed above the breakdown volume bar. A potential of the deal is up to 110 pips.
Despite the breakout of the resistance, our previous scenario of opening short positions for this currency pair remains actual as there is a strong downtrend. Besides it, the growth was on average volume, so we can’t consider it as a reversal signal.
We can enter the market after the resumption of the fall on large volume. A stop loss should be placed above the level 1.2542. A potential of the deal is more than 100 pips.
After the breakout of the resistance, the price fell down sharply, but on really low volume, so we can’t consider it as a reversal signal.
On the other hand, we can’t open long positions after such a strong downward move. So that we need to wait for the continuation of the growth and total absorption of the fall. Preferably, that the move will be supported by increased volume. A stop loss should be placed below the beginning of the abrupt growth. A potential of the deal is up to 70 pips.
Gold continued its upward movement and broke through the previous level of resistance on large volume. It is worth noting that the breakout movement was sharp, after which the price continued growing.
It is also necessary to allocate a new support level of 1304.30 – 1307.60 in which fairly large volume is concentrated.
Considering all the above factors, it is worth considering only purchases for gold. It is desirable to open long positions after a small and smooth correction of the price down to get a more profitable entry point and risk/profit ratio. Movement should be on small volume. A stop loss should be placed under the support level 1304.30 – 1307.60 with a small margin. The potential of the deal is more than 150 points.
The sentiment: this indicator confirms all our scenarios which is a great confirming signal for active trading.
The bottom line: there are a plenty of good scenarios on the market right now, so we should wait for good entry points and then open deals.