The downward correction for the Euro stopped, but the growth of the price was on small volume, so we can’t consider it as a signal for entering the market. Also we can’t point out any new volume level or zone because of this.
To be able to open long positions we need to see a sharp upward move on large volume, which will be a great signal for the continuation of the uptrend for EUR/USD.
GBP/USD has finally broken out the resistance level 1.3216 and now the price is trading above this level. It is worth noting that the breakout movement was sharp and on very large volume, after which it continued its growth. These are excellent signals that the breakdown is not false and the price is likely to continue its upward movement.
As for the new volume levels, then, unfortunately, they can not be highlighted, because the volume is evenly distributed throughout the schedule.
Considering all factors, it is worth giving preference to long positions. Since a stop loss must be placed under the breakout volume bar, we need to wait for a small downward correction to get a good entry point. The growth potential is about 120 points.
USD/JPY continued growing, but the movement was and is on average volume, so we can’t both point out any new volume level and consider it a strong reversal signal. That’s why we can’t trade this move at the moment, because there is a global downtrend for this currency pair and we need to get extra sign that it is over.
The situation for the Canadian dollar remains the same as the price is still trading in the consolidation near the local minimum. So our previous scenario remains the same: after a strong bearish momentum we can open short positions with a stop loss placed above the consolidation. A potential of the fall is 100+ pips.
The Australian dollar is trading in the consolidation near the level of support 0.8017 – 0.8028, where large volume is concentrated. Given the presence of the global uptrend for this instrument, we should give preference to long positions. We can enter the market after a resumption of the growth on large volume. A stop loss should be placed below the consolidation. A potential of the deal is more than 70 pips.
Gold stopped falling and showed a smooth growth yesterday. We should note that the upward move was on low volume, so we can’t consider it as a continuation of the uptrend for this instrument. Moreover, we can’t point out any new volume level or zone.
Given all these facts, we should stay out of the market and wait for a strong bullish signal which will confirm the resumption of the uptrend. The growth should be sharp and supported by increased/large volume. It will be a more accurate signal. Until volume on the market is low, we should skip this instrument.
The sentiment: this indicator confirms our scenarios for the pound, Canadian and Australian dollars. For gold long positions should be in priority too. For the Euro the situation is complicated, as sentiment is equal.
The bottom line: the situation on the market have not been changed so everything remains the same – waiting for strong additional signal and enter the market. Long positions for GBP/USD are in priority!