Despite the growth of the price during the Asian session today, we still should give preference to short positions for the Euro as there are two strong resistance levels and the fall of the price was supported by large volume while the correction was on small volume.
We can enter the market after a resumption of the fall of the pair on large volume both from the current level or after a test of the resistance. A stop loss should be placed above the level of resistance. A potential of the deal is around 120 points.
The pound grew up and tested the upper limit of the consolidation/resistance level 1.3318 and is still trading in the range, where large volume is concentrated. Given that we should note that our previous scenario remains relevant and we are able to trade this currency pair only after a sure exit of the price from the consolidation.
The breakout move should be abrupt and supported by increased volume in order to avoid any false breakouts, so it will be a more accurate signal for entering the market.
While the price is located in this range, we should stay out of the market.
USD/JPY resumed its growth and tested the upper limit of the consolidation/resistance level 114.20 yesterday. The test of the level was on increased volume, however, the price did not rebound from it, but remained trading near this mark. This is a signal to a possible breakdown of this resistance, which will give an excellent opportunity to open long positions.
The breakdown movement must be sharp and on large volume. The price should be fixed above the resistance level and after a continuation of the growth we can open purchases. A stop loss should be placed just below the volume breakdown bar or the beginning of the breakout movement. The potential of the deal is 110-120 points.
The Canadian dollar is now locked in the range between two levels: the support 1.2764 – 1.2777 and the local maximum/resistance 1.2911. Large volume is concentrated in this range, so the exit of the price from it will be a good signal for entering the market.
Given the local uptrend and that the fall of the price was on small volume, we should give preference to long positions. A stop loss should be placed below the breakout bar. A potential of the growth is more than 100 pips.
AUD/USD is trading in the consolidation 0.7634 – 0.7720. The price is located near the upper boundary of the range, but we should note that the growth of the pair was on small volume.
So the best scenario will be just wait for the price to come out from the consolidation and then trade this instrument.
Until that it is better to be out of the market.
Nothing has changed for gold as the price is trading in the consolidation between two strong volume levels: the first one is 1264.40 – 1266.00 and the second – 1282.70 – 1284.60. Besides it we must note the huge volume accumulation, which is located in this range.
Given all these facts we can consider any new deals only after the exit of the price from the range, moreover, the breakout move should be sharp and supported by large volume, which will a stronger signal for entering the market.
While gold is trading in the consolidation, we should stay out of the market.
The sentiment: the mood of the market confirms all our scenarios, which is a good additional signal for opening new positions in case of good entry points.
The bottom line: the situation on the market remains the same, so all our previous scenarios are actual. Watch for fundamental new for the Pound today.