On Thursday, the euro showed a rapid fall and finally the price left the consolidation down. Now a large accumulation of volume, which is concentrated in this range, acts as a resistance.
The breakout movement was sharp and on fairly large volume, which is an excellent bearish signal. It is also worth highlighting a new resistance level 1.1716 – 1.1732, in which significant volume is concentrated.
Given all of the above factors, short positions on EUR/USD look the most interesting scenario for trading.
Sales should be opened after the resumption of the price fall, it is desirable that the downward movement should be on increased volume. This will be another confirmation that the breakdown of consolidation was not false. A stop loss should be placed a little above the resistance level. The first goal is 90-100 points, the second – 180 points.
GBP/USD fell down yesterday and broke down the lower boundary of the consolidation. The move was abrupt and on large volume + two new resistance levels were created. The first one – 1.3184 – 1.3204, the second – 1.3124 – 1.3145. Both levels contain increased volume.
Given all these facts, we should consider exceptionally short positions. We can enter the market after a resumption of the fall from the current level or after a smooth upward correction. A stop loss should be placed above the resistance 1.3124 – 1.3145. A potential of the deal is 140-150 pips.
If the price breaks out the first resistance during its correction, we can apply the same scenario to the level 1.3184 – 1.3204.
The Yen fell down, then grew up and is still trading in the local consolidation below the resistance 113.20. So nothing has changed here and we still should consider opening long positions after a breakout of the resistance level. A move should be sharp and on large volume, so it will be a more accurate signal. A stop loss should be placed below the breakout volume bar. A potential of the deal is 120 pips.
The price grew up strongly as suggested and broke out the previous local maximum. Also we need to point out the level 1.2519, where the fixation of the price was. So now we should consider long positions. We can enter the market after a smooth downward correction to get a better entry point and risk/profit ratio. A stop loss should be placed below the level 1.2519. A potential of the deal is 90-100 pips.
The pair has finally come out from the consolidation and now is trading below this range. The move was pretty abrupt and was supported by increased volume. Also we need to point out the level of resistance 0.7811, where large volume is concentrated.
Given the facts above, we should open short positions after a smooth upward correction to obtain a better price for enter. A stop loss should be placed above the resistance. A potential of the deal is 60-70 pips.
Gold continued falling, moreover, the move was supported by increased volume, which is a good bearish signal. Unfortunately, volume was spread throughout the chart, so we can’t point out a specific level, but anyway, we should give preference to short positions.
We can enter the market after a smooth upward correction to get a better entry point and, as a consequence, a better risk/profit ratio. A stop loss should be placed above the yesterday’s maximum. A potential of the deal is 120-130 points.
The sentiment: this indicator confirms all our scenarios except USD/CAD, so it strengthens our trading plan.
The bottom line: there are a plenty of good deal on the market right now, so we just wait for good entry point and open new positions. EUR, GBP are in priority.