Despite the strong growth of the price yesterday, the Euro is still locked in the consolidation between two strong volume levels: 1.1680 – 1.1699 and 1.1870. So our previous scenario remains the same: trading only after the exit of the price from the consolidation. But given the sharp upward move, we should give a little advantage to long positions.
We can open purchases after an abrupt and sure breakout of the level 1.1870. The movement should be supported by large volume, which will be a more accurate signal. A stop loss should be placed below the breakout volume bar. The target is 1.2015.
The Pound grew up sharply and on large volume yesterday, which is a good bullish signal. So even despite the fact that the price is trading in the range right now, we should consider the scenario of its exit from the consolidation up. It will give a possibility to open long positions.
The move must be abrupt and supported by increased/large volume in order to insure us from fake movements. A stop loss should be placed below the breakout volume bar. A potential of the deal is up to 200 pips.
The price corrected down strongly yesterday. We should note that the move was pretty sharp and on large volume, so our previous scenario is questionable at the moment. Also we need to point out the new resistance level 114.20, which is a local maximum + the price started falling from exactly this level.
So we can consider long positions only after a breakout of the fresh resistance. A stop loss should be placed below the breakout volume bar. A potential of the deal is more than 110 pips.
As for short positions, we can consider them after a breakdown of the support 111.73 – 111.86.
USD/CAD continued its growth after the release of fundamental news yesterday. It is worth noting that the upward movement was very sharp and on very large volume, which is an excellent bullish signal. It is also necessary to allocate a new support level 1.2764 – 1.2777, which was formed during this movement and which contains very large volume too.
Given these factors, we should give preference exceptionally to long positions for this currency pair. Sales can be opened after the test of the level of support and the resumption of the price growth from it. A stop loss should be placed below this level. The potential of the deal is more than 100 points.
The Australian dollar continued falling on increased volume, which is a good bearish signal. So our previous scenario remains actual: we should give preference to short positions. We can enter the market after a smooth upward correction in order to obtain a better entry point. A stop loss should be placed above the level 0.7785. A potential of the deal is around 100 pips.
The situation for gold is complicated as the price showed a significant growth on large volume yesterday. Also the new support 1271.40 was created during the move. So until its breakdown we can’t consider short positions.
On the other hand, there is a downtrend and huge volume accumulation at the top of the chart. So opening long positions is quite risky at the moment.
Moreover, the price is trading in some kind of local consolidation, that’s why the best decision will be waiting for its exit from the range. The move should be sharp and on large volume. Until that it is better to stay out of the market.
The sentiment: this indicator confirms all our scenarios, so after an appearance of good entry point we should enter the market.
The bottom line: pretty interesting situation for trading is in the market. That’s why we must watch for profitable entry points and then we can consider new deals.