Due to some fundamental factors (the Fed’s interest rate decision, the FOMC meeting), the US dollar strengthened against all major currencies, including the euro. As a result, EUR/USD showed a significant fall on very large volume. It is also worth highlighting a new resistance level 1.1886 – 1.1900, in which large volume is concentrated. In addition, the price was fixed exactly below this mark.
Given such a strong fall, it is necessary to consider the sales scenario as a priority. We can open short positions after the resumption of the fall of the price from the resistance level (or after its test). The movement should be sharp. It is desirable that volume during the fall is increased. A stop loss should be placed above the level of 1.1900 with a small margin. The potential of the fall is 80-90 points.
The Pound showed a fake growth and then fell down sharply and on very large volume. Nevertheless, the price did not breakdown the lower boundary of the local consolidation.
Also, volume was spread throughout the move so we can’t point out any concrete level.
Anyway, given such a strong fall, we should consider opening short positions. We can enter the market after a breakdown of the level 1.3472, which is a lower boundary of the consolidation. The move should be supported by increased volume. A stop loss should be placed above the breakdown volume bar. A potential of the deal is around 100 pips.
The strong growth of the price after the FOMC meeting only confirms the the scenario of further continuation of the uptrend for USD/JPY. The upward move was supported by large volume. Also we need to point out the new level of support 112.06.
Given all these factors, we should deliberate long positions. We can enter the market after a resumption of the growth on increased volume either from the current level, or after a smooth downward correction. A stop loss should be place below the support level with a little margin. A potential of the deal is around 90-100 pips.
The price grew up strongly and broke out the previous level of resistance, but the new one was created. It’s 1.2345 – 1.2368. This level contains large volume and stopped the growth of the pair.
So that we can consider long positions only after a sure breakout of this mark on increased volume. A stop loss should be placed below the breakout volume bar. A potential of the deal is 100-110 pips.
AUD/USD fell down sharply and on large volume, but the price is still located in the consolidation. Moreover, volume is spread throughout the movement, so that we can’t highlight any particular level.
That’s why we need to wait for a breakdown of the support 0.7942 – 0.7950 on large volume. While the price is trading in the consolidation, we should stay out of the market.
After the test of the previous resistance the price fell down strongly and on large volume. Also we need to point out the creation of the new volume resistance 1300.80 – 1303.40, under which the price was fixed.
That’s why we should give preference to short positions. We can enter the market after a resumption of the fall of the price either from the current level or after a smooth upward correction. The move should be sharp and preferably supported by increased volume. A stop loss should be placed above the resistance. A potential of the fall is 120-130 pips.
The sentiment: this indicator has not reacted on the changes on the market, so now we can’t rely on its value.
The bottom line: after the FOMC meeting a lot of new levels were created which gives us a possibility to trade almost all instruments.