EUR/USD is locked in the local little range above the previous resistance level, which is a good bullish signal. Unfortunately, given that the breakout was on small volume, we can’t point out any new volume levels, so now it is difficult to trade this pair as we don’t have a good place for a stop loss. Anyway, we should give preference to purchases.
We may enter the market after an appearance of bullish impulse on increased/large volume. A stop loss should be placed below the beginning of the abrupt growth. A potential of the deal is more than 100 points.
After the test of the resistance 1.3316 the price showed a smooth correction of the price on small volume, so our previous scenario is still actual: we expect a further growth of the price and a breakout of the resistance level, which will allow us to consider long positions for this currency pair.
The breakout move should be abrupt and sharp + supported by large volume, which will insure us from fake breakout. A stop loss should be placed below the breakout volume bar. A potential of the deal is 120+ points.
The Yen corrected up yesterday and is trading near the resistance level 111.58 – 111.68, in which large volume is concentrated. Given that the growth of the price was on small volume, our previous scenario of opening short positions is still actual.
We can enter the market after a resumption of the fall of the price from the level. A stop loss should be placed above the resistance. A potential of the deal is more than 150 points.
The pair had tested the lower boundary of the range/support level 1.2669, but failed to break it out and remained trading in the consolidation. So that we should consider new deals only after the exit of the price from the range on large volume. Until that it is better to stay out of the market.
Everything remains the same for AUD/USD: the price is locked in the local consolidation 0.7538 – 0.7649. That’s why we may consider any new deals only after the exit of the price from the range. The move must be sharp and supported by large volume, which will be a more accurate signal for entering the market.
The price tested the resistance level/upper limit of the consolidation 1292.50 once again, but could not break it and is trading in a small local consolidation near this level now. Given the sharp growth of the price and the lack of reaction of the price on resistance, it is worth considering the scenario of breakout of this mark, which will be an excellent signal for entering the market and opening long positions for this instrument.
Purchases can be opened after a sharp and rapid breakout of the level 1292.50 on increased/large volume to insure against false movements. In addition, this signal will be more reliable and strong. A stop loss should be placed under the breakout volume bar. The potential of the deal is about 150 points.
The sentiment: all our scenarios are confirmed, which is a great additional signal for active trading. That’s why wait for good entry point and enter the market.
The bottom line: a quite good situation for active trading in the market, so watch for acceptable entry points and then consider new deals. EUR/USD and USD/JPY are in priority.