The Euro resumed its growing yesterday and is testing the level of resistance 1.1816 at the moment. Yes, the price has already broken this mark out, but the move was on small volume, so we can’t enter the market right now, but given that the upward move was sharp and supported by increased volume, so we should give preference to long positions.
We can enter the market after the appearance an additional signal – a strong bullish impulse, which will be a more accurate sign. The movement should be supported by increased/large volume. A stop loss should be placed below the level 1.1793 (the breakout bar). A potential of the deal is more than 100 points.
The Pound grew up strongly and is testing the resistance/upper limit of the consolidation 1.3316 right now. Given that the price did not showed any reaction on this level and is trading at it, we should consider a scenario of its breakout, which will allow us to open long positions.
The breakout move should be sharp and supported by large volume, which will be a stronger and more accurate signal for entering the market. Besides it, such conditions will insure us from fake moves. A stop loss should be placed below the breakout volume bar. A potential of the deal is more than 150 points.
USD/JPY showed a rapid fall and broke down the previous support level, which is an excellent bearish signal. The price movement was sharp and on fairly large volume, and a new resistance level 111.58 – 111.68 was formed, where large volume is also concentrated. Thus, it is worth giving preference to short positions for this currency pair.
Sales should be opened after a slight smooth correction of the price to the resistance level in order to get a more profitable entry point. The price growth should be on small volume, which can be regarded as a technical correction. A stop loss should be placed above the breakout volume bar – 111.88. The fall potential is more than 120 points.
The price fell down, but is still located in the local consolidation between levels 1.2669 and the 1.2821, so our previous scenario remains the same – we can consider new deals only after a sure breakout of the range. The movement must be abrupt and supported by large volume. Until that, it is better to stay out of the market.
AUD/USD showed a rapid growth on increased volume yesterday, so our previous scenario is cancelled. Unfortunately, volume was spread throughout the move, so we can’t point out any new volume level.
Overall, the price is locked in the local consolidation 0.7538 – 0.7649. So we can consider new positions only after a confident breakout of one of the boundaries of the consolidation on increased/large volume.
While the pair is located in the range, we should stay out of the market.
Gold has tested the resistance/upper boundary of the consolidation 1292.50, but failed to break it out and is trading a little bit below this level. Given that the move was sharp and the price is did not showed any significant reaction on the resistance, we should consider a scenario of the breakout of this level. It will be a great bullish signal for us.
The breakout movement should be keen and strong + supported by large volume, so we will be insured from the fake moves. This will be a more accurate signal for entering the market.
A stop loss should be placed below the breakout volume bar. A potential of the deal is more than 150 points.
The sentiment: the mood of the market confirms all our scenarios, which is a great additional signal.
The bottom line: the situation on the market became better as we have a plenty of good scenarios, especially for the Euro, the Pound, the Yen and gold.