The Euro corrected down after the release of some macroeconomic news in the USA. The move was abrupt and supported by large volume. Now the pair is located a little bit above the support level 1.1741 – 1.1757, where large volume is concentrated. So until its breakdown, we should give preference to long positions.
We may enter the market after the test of the support and sharp rebound of the price up, which will give us an opportunity to consider long positions for this currency pair. A stop loss should be placed below the level of support. A potential of the deal is 90 points.
GBP/USD is still located in the global consolidation, where large volume is concentrated right now. The price did not show any significant moves on Wednesday, so we are unable to point out any new volume levels or zones.
Given these facts, the only possible scenario for this currency pair is just to wait for the sharp and confident breakout of the boundaries of the consolidation. The move must be supported by large volume, which will insure us from fake breakouts.
After the breakdown of the previous support level/the bottom of the consolidation, USD/JPY continued its fall until the new support 112.51 was formed, in which very large volume is concentrated. After the formation of this mark, the price jumped up sharply, but later resumed falling again. It is also worth noting that there is a large volume accumulation at the top of the chart, which exerts additional pressure on the price.
Thus, the most likely scenario is the resumption of the fall of the price and the breakdown of a new level of support. If the breakout movement is sharp and on large volume, then this will be an excellent bearish signal, which will enable us to open short positions. A stop loss should be placed just above the breakdown volume bar. The first goal is 80 points, the second – 130 points.
The price grew up sharply yesterday, but still remained trading in the consolidation between two levels: 1.2669 and 1.2807. Also we need to point out that large volume is concentrated in this range, so the best decision will be just waiting for the exit of the pair from the range.
Until that it is better to stay out of the market.
Our scenario for the Australian dollar was executed, but the price has not showed a sharp fall yet. Anyway, we should give preference to short positions as the price broke down the lower limit of the range recently.
We may enter the market after a resumption of the fall on increased volume after a smooth upward correction of the price. A stop loss should be placed above the level 0.7622. A potential of the deal is 90-100 points.
Gold had tested the resistance/upper limit of the consolidation 1287.70, but failed to break it out and fell down sharply after that. The move was supported by large volume and now the price is locked in the middle of the consolidation.
That’s why our previous scenario remains the same: we may consider new deals here only after a confident and strong exit of the pair from the consolidation. The movement must be supported by large volume, which will be a more accurate signal for entering the market.
While the price is located in the consolidation, we should stay out of the market.
The sentiment: it confirms our scenarios for the Euro and the Australian dollar. For all instruments it does not play big role as they are locked in ranges.
The bottom line: we have a couple of good scenarios (EUR/USD, AUD/USD) right now. To be able to trade other currency pairs and gold we should get some more confirming signals.