The Euro did not show any significant movement yesterday, so the price was and is located in the local consolidation. It should be noted that quite large volume is concentrated at this level, so the best decision will be to wait for the strong exit of the price from it. On the other hand, given the presence of the local uptrend, we can consider long positions as the priority scenario.
Purchases can be opened after an appearance of sharp and strong bullish impulse. The movement must be supported by large volume in order to be a more accurate signal that the uptrend continues. A stop loss should be placed below the consolidation. The target is the local maximum.
As it was predicted, GBP/USD continued its growth and broke through the previous resistance level. The movement was quite rapid and on large volume. It is also necessary to allocate a new level of support 1.3391 – 1.3417, which was formed during this movement and in which large volume is concentrated. After the formation of this level, the pair continued its growth.
Considering all the above factors, it is worth giving preference to long positions on this instrument. Purchases should be opened after a smooth downward correction in order to obtain a more profitable entry point and, as a consequence, a more favorable risk/profit ratio. A stop loss should be placed under the support level with a small margin. The growth potential is about 130 points.
The price has broken out the resistance level/upper limit of the local range and grew up strongly. We should note that the move was sharp and supported by large volume, so we can consider long positions at the moment, but very careful, as there is a local downtrend for USD/JPY.
We can enter the market after a smooth downward correction and a resumption of further growth on large volume. A stop loss should be placed below the breakout volume bar – 111.60. A potential of the deal is more than 120-130 points.
USD/CAD had broken out the resistance, but the upward movement was stopped by the new one – 1.2872, where large volume is concentrated. That’s why we can open long positions after a sure breakout of this mark. The move should be abrupt and supported by large volume to insure us from fake breakouts.
The pair is still in the range, so nothing has changed at all and we can consider new deals only after a confident exit of the price from the consolidation. The breakout move must be keen and abrupt, which will be a more accurate signal for entering the market.
Gold failed to breakout the resistance level and fell down strongly. The fall of the price was sharp and on large volume, so now we can’t consider long positions. Moreover, the pair returned into the global range, where large volume is concentrated. The lower limit is 1264.40 – 1266.00, the upper – 1299.00.
Given the last factor, we should consider new positions for this instrument only after the exit of the price from the range. The move must be strong, sharp and supported by increased/large volume in order to avoid any false breakouts.
While the price is locked in the consolidation, it is better to stay out of the market.
The sentiment: this indicator confirms our scenarios for the EUR/USD, GBP/USD and USD/CAD, so these instrument should be in priority today.
The bottom line: the situation on the market did not changed significantly, so almost all (except USD/JPY) our previous scenarios are still actual.