The Euro showed a smooth downward correction yesterday. The move was also on small volume, so we should consider it as a technical correction, not as a reversal signal. Moreover the pair is still trading above the previous correction.
So that our previous scenario of opening long positions remains the actual. We should enter the market after a resumption of the growth of the price on large volume. A stop loss should be placed below the beginning of the abrupt move. A potential of the deal is 100-110 pips.
Yesterday GBP/USD showed a V-pattern: first the price fell on the average volume, and then it grew rapidly, with the upward price movement was on very large volume and completely absorbed the previous fall of the pair. This price movement is an excellent bullish signal.
Also it is worth noting the formation of a new support level of 1.3225 – 1.3254, in which large volume is concentrated.
Given all of the above facts, it is worth giving preference exceptionally to long positions for the pound. We can open long positions after the resumption of price growth, especially if before that, it will test the level of support. A stop loss should be placed just below this level. The potential of the deal is about 150-160 points.
The Yen is still trading in the consolidation below the resistance 113.20 – 113.42. Large volume is concentrated in this consolidation, so that we should trade this currency pair only after a breakout of the range. The move should be sharp and on large volume as it will be a more accurate and stronger signal.
The price corrected up and is still trading in the consolidation between two strong levels: the support 1.2404 – 1.2428 and the resistance 1.2566 – 1.2580. Large volume is concentrated in such range, so the best decision will be waiting for the price to come out from the range and only after that we can consider opening long positions. The move should be sharp and on increased/large volume.
The pair is also trading in the range between two levels: the support 0.7744 and the resistance 0.7868. Pretty large volume is concentrated in this consolidation, so we should wait for the exit of the price from it to be able to deliberate new deals here. The move should be abrupt and on increased/large volume.
Gold had broken out the previous resistance and was fixed above it. We should note that the breakout move was smooth and on small volume, but before it large volume appeared at the daily minimum and pushed the price up. So we can guess that buyers have opened longs at that level and then gold grew up.
Also we need to point out the new support level 1290.20, from which the abrupt growth began.
Given all the facts above, we should give preference to long positions for gold. We can enter the market after a smooth downward correction in order to get a better entry point and, as consequence, a better risk/profit ratio. A stop loss should be placed below the support. A potential of the deal is 140+ pips.
The sentiment: as earlier, our scenarios for the Euro and for the Pound are confirmed. For gold the indicator shows equal value. For all other currency pairs the mood of the market is useless now as they are in consolidations.
The bottom line: EUR/USD and GBP/USD are in priority. The situation for gold is also interesting for trading. For all other instruments we need to wait for the exit of the price from ranges.