Nothing has changed for the Euro as the pair is still trading in the global consolidation where large volume accumulation is located. So that our previous scenario remains the same: we can trade this instrument only after a confident and strong exit of the price from the consolidation.
The breakout move should be sharp and supported by large volume. It will be a more accurate signal for entering the market.
While the pair is trading in the range, we should be out of the market.
The situation for the Pound also remains the same as the price is locked in the local range between two strong volume levels: the support 1.3049 and the resistance 1.3318. Also we should note that quite large volume accumulation is concentrated in this consolidation, that’s why the best scenario for this currency pair is waiting for the exit of the price from the range.
The breakout movement should be abrupt and on increased/large volume, which will be a more accurate and strong sign for opening new deals.
Until that we should stay out of the markets.
The Yen corrected down yesterday, but the movement was on small volume, so that we can’t consider it as a reversal or bearish signal. That’s why our previous scenario remains the same: long positions should be in priority, but we can enter the market after a resumption of the growth on large volume, which will a good bullish signal. A stop loss should be placed below the level 113.05. A potential of the deal is more than 110 pips.
USD/CAD continued growing, which is a good bullish signal, but unfortunately, there is no a good entry point at the moment. We need to wait for a smooth downward correction of the price in order to get a better price for entering the market. A stop loss should be placed below the support 1.2558 – 1.2570. A potential of the deal is 130-140 points.
The pair was trading in the small consolidation below the previous local consolidation yesterday. Volume on the market was small, so we can’t point out any new volume level or zone. Given the exit of the price from the consolidation, we should give preference to short positions. We can enter the market after a resumption of the fall on increased/large volume. A stop loss should be placed above the beginning of the sharp move. A potential of the deal is 50-60 points.
Gold broke through the previous level of support, but could not continue the downward movement and after the formation of rather significant volume at the bottom of the chart grew sharply up. It is worth noting the new volume support level of 1272.90, from which the price rebounded sharply upwards.
Nevertheless, given the downward trend and the fact that the price growth was not on large, but on increased volume, it is worth considering the scenario of the fall and a breakdown of the level of support. The movement should be sharp and on large volume, which will be a more accurate signal for entering the market. A stop loss should be placed slightly above the volume breakout bar. The first target of the deal is 120 points, the second – 220 points.
The sentiment: it confirms our scenarios for USD/JPY, USD/CAD, AUD/USD and XAU/USD, which is a positive signal for active trading this instruments. For EUR/USD and GBP/USD this indicators does not matter as these currency pairs are trading in ranges.
The bottom line: USD/JPY and USD/CAD are in priority. AUD/USD and XAU/USD also have pretty interesting scenarios for trading.