As predicted, EUR/USD broke out the previous resistance level/the upper limit of the consolidation, after which it grew up strongly. It is worth noting that the price movement was supported by large volume, which is a great bullish signal. In addition, it is necessary to allocate a new level of support 1.1741 – 1.1757, which was formed during yesterday’s price increase and contains quite significant volume.
Given all of the above factors, long positions look the most interesting and likely scenario. Purchases should be opened after a small and smooth correction of the price to the level of support (or test this mark) and the resumption of the price growth. A stop loss should be set below the level 1.1741 with a small margin. The potential of the deal is about 100 points.
The Pound showed a quite significant growth yesterday, but still it is located in the global consolidation, where large volume is concentrated.
So that our previous scenario remains unchanged and we should trade this currency pair only after a strong breakout of the boundaries of the range. The move must be supported by large volume.
The Yen is testing the support level/lower boundary of the consolidation at the moment, so it is correct to consider the scenario of its final breakdown which will be a good bearish signal for entering the market. The movement must be supported by increased or large volume, it is a must condition. A stop loss should be placed above the breakdown volume bar. A potential of the deal is 120+ points.
It is necessary to point out the new resistance volume level for USD/CAD. It is 1.2768. This level has stopped the growth of the price, after which the pair resumed falling. So that we may consider short positions in case of the test of this mark and resumption of the fall, but on large volume. It will be a stronger signal for entering the market. A stop loss should be placed above the resistance. A potential of the deal is more than 100 points.
The Australian dollar finally broke down the level of support/lower limit of the consolidation, so now we may consider short positions for this currency pair. We can enter the market after a smooth upward correction and resumption of the fall on increased volume. A stop loss should be placed above the level 0.7632. A potential of the fall is 80-90 points.
Gold grew up solidly yesterday. The move was on really large volume, so even despite the fact that the price is still locked in the range, it is a good signal for the continuation of the upward move. So the scenario of the breakout of the upper limit of the consolidation is in priority right now.
We may consider long positions after a confident and sharp breakout of the resistance level 1287.70 on large volume. The move must be supported by increased/large volume. A stop loss should be placed below the breakout volume bar. A potential of the deal is 150 points.
The sentiment: the mood of the market confirms our scenarios for EUR/USD, AUD/USD, USD/CAD. The scenario for the Yen isn’t confirmed, but given technical factors, short positions should be in priority.
The bottom line: the situation on the market became better as there are a couple of really good scenarios for trading (EUR/USD, USD/JPY, AUD/USD).