The price grew up yesterday, but the move was smooth and on average volume, moreover, the pair is still trading in the local consolidation between levels 1.1578 and 1.1677. Besides it we should note the presence of huge volume accumulation within this range, which means that big players are gaining positions.
That’s why the best decision will be waiting for the price to breakout one of the boundaries of this consolidation which will be an excellent signal for entering the market. The move must be sharp and supported by increased volume, that will be a more accurate sign.
Everything remains the same for the Pound, as the price is still locked in the global consolidation, where large volume is concentrated. So we can consider that market makers are gaining new positions within this range.
Given all these fact, our previous scenario is actual: we may enter the market only after the sure exit of the pair from the consolidation on large volume. This will enable us to consider new deals for the Pound.
Until that it is better to stay out of the market.
USD/JPY showed a fairly significant fall and broke through the previous level of support on increased volume. Nevertheless, the price could not continue falling, as the new volume support level 113.11 – 113.26 was created, which stopped the fall of this currency pair. At the moment, the price is trading near this mark.
Given the sharp fall of the price and the breakdown of the support/lower limit of local consolidation, it is worth giving preference to short positions on the pair USD/JPY.
Sales should be opened after a continuation of the movement down and a breakdown of a new level of support on large volume, which will be an excellent signal for entering the market and opening short positions. A stop loss should be placed just above the breakdown volume bar. The potential of the deal is 120-130 points.
USD/CAD continued its fall and broke down the local minimum. The move was quite abrupt, but on average volume. Anyway, now short positions should be in priority.
We can enter the market after a smooth correction of the price (to obtain a better entry point) and a resumption of the sharp fall. A stop loss should be placed above 1.2730. A potential of the deal is 170-180 points.
The Australian dollar is still located in the range 0.7634 – 0.7720, so nothing has changed for us and we can trade this currency pair only after the price comes out from this consolidation. The movement must be sharp and supported by large volume, which will be a stronger signal for entering the market.
It is necessary to point out the new level of resistance for gold. It is the level 1287.70. AS can be seen from the volume chart below, this level was tested on increased volume a couple of times, but the price could not break it out.
But given the breakout of the previous resistance and the absence of strong rebound of the price down, we should consider the breakout of this level as the most probable scenario. It will open a possibility for entering the market and opening long positions. A stop loss should be placed below the breakout bar. The target is 1305.00.
The bottom line: the situation on the market is still a bit complicated, but still there are a couple of good scenario: USD/JPY and XAU/USD