After a fairly significant correction of the price, EUR/USD tested the support level 1.1741 – 1.1757, in which large volume is concentrated and jumped up. It should be noted that the price rebound was quite sharp, but on very small volume, so this movement cannot be regarded as a resumption of price growth. Nevertheless, given the strong support and the previous sharp growth of the price, it is worth giving preference to long positions for this currency pair.
Purchases can be opened after the test/correction to support and a sharp rebound of the price up on an increased volume, which will be a more accurate and strong signal for entering the market. A stop loss should be placed a bit below 1.1741. The potential of the deal is 100 points.
Despite the growth of the price yesterday, the pair is still located in the global consolidation, in which large volume is concentrated, so we may consider that market makers are gaining their positions in this range.
Given that fact, we should wait for the breakout of the consolidation, which will be an excellent signal for entering the market. The breakout move must be sharp and supported by increased/large volume, which will be a more reliable sign.
The Yen resumed its fall and is testing the fresh support level 112.51 at the moment. If the price breaks it down, especially on increased/large volume, we will be able to consider short positions for USD/JPY. A stop loss should be placed above the breakout volume bar. A potential of the deal is around 120 points.
Nothing has changed for USD/CAD as the pair is still trading in the local consolidation 1.2669 – 1.2807. Also it is necessary to point out that large volume is concentrated in this range, so the best decision will be just wait for the price to come out from it. The movement should be abrupt and supported by large volume. Until that it is better to stay out of the market.
The price fell down pretty sharply during the Asian session today, but the move was on small volume. Nevertheless, given the entire tendency of the price move and the recent breakdown of the consolidation, we should consider exceptionally short positions for the Australian dollar.
We can enter the market after a little upward correction in order to get a better entry point. A stop loss should be placed above the level 0.7620. A potential of the fall is up to 90-100 points.
Gold grew up solidly yesterday, the it does not matter as the movement was on small volume + the price is still locked in the consolidation between two volume levels: the support 1264.40 – 1266.00 and the resistance 1287.70. So that we should trade this instrument only after an abrupt exit of the price from the consolidation.
The breakout movement must be strong and sharp + supported by large volume, which will insure as from fake moves and will be a more reliable signal for entering the market. While the price is located in the consolidation, we should stay out of the market.
The sentiment: the mood of the market confirms our scenarios for the Euro and the Australian dollar. Even despite that it does not confirm our plan for the Yen, short positions look like the most possible scenario.
The bottom line: EUR/USD, USD/JPY and AUD/USD should be in focus today. All other instruments should be traded only after a breakout of consolidations.