The price continued its correction yesterday. The move was supported by increased volume, but on the other hand, there is a strong uptrend for EUR/USD. That’s why the best decision will be waiting for the stoppage of the fall and the resumption of the growth of the pair on large volume, which will give us an opportunity to consider that uptrend is going on and open long positions.
The movement must be sharp and supported by large volume, these are must conditions! A stop loss should be placed below the beginning of the abrupt growth. The target is the resistance 1.1954.
Yesterday GBP/USD showed a rapid price growth after the end of the local downward correction. It should be noted that the growth resumed after the formation of a new support level of 1.3221 – 1.3241, in which large volume is concentrated. It is also necessary to highlight the fact that the price grew on very large volume, which is a strong bullish signal. At the moment, the price is trading near the local maximum/resistance level 1.3375.
Thus, we can open long positions only after a sure breakdown of this mark. The breakdown movement must be sharp. A stop loss should be placed under the level of a fixation the price – 1.3330. The potential of the growth is about 140-150 points.
The Yen corrected up and is testing the resistance level 111.58 – 111.68, so in general, the price is located in the local consolidation. The lower limit is the support 110.90. Thus, we can consider new positions for USD/JPY only after a confident exit of the pair from this range. The movement should be sharp and on large volume, in order to avoid fake breakouts.
Despite the fact that the price is still locked in the local consolidation, we should consider the scenario of opening long positions as the price is testing the resistance/upper limit of the range 1.2821 at the moment. If the pair breaks this level out sharply and on large volume, we can open purchases. A stop loss should be placed below the breakout volume bar. A potential of the deal is 90 points.
Nothing has changed for AUD/USD as the pair is located in the local consolidation. Now the price is in the middle of it. That’s why the best decision will be just to wait for the exit of the pair from the consolidation. This will enable us to consider new positions for this instrument.
Gold is still trading in the local consolidation below the resistance level/upper boundary of the global range 1292.50, so that our previous scenario remains the same: we should consider long positions after the sharp breakout of the level.
The breakout movement should be supported by increased/large volume, which will be a more accurate signal for entering the market + it will insure us from fake breakouts. A stop loss should be placed below the breakout volume bar. A potential of the deal is around 150 points.
The sentiment: the mood of the market confirms our scenarios for the EUR/USD, GBP/USD, USD/CAD and XAU/USD, which is a good additional signal.
The bottom line: long positions for the Pound are in priority today. For all other instrument we need to get some additional signal to be able to enter the market.