EUR/USD grew up strongly on Friday and tested the resistance level 1.1929. After the formation of large volume at the top of the bar, the price bounced down. It should be noted that the upward movement was on significant volume, and the correction of the price – on small, so we can consider the scenario of continuation of the growth and breakout of the resistance level, which will be an excellent signal for purchases.
The breakout movement must be sharp and on an increased volume, which will be a more accurate signal for entering the market. In addition, this will protect us from false breakdown. A stop loss should be placed under the breakout volume bar. The potential of the deal is more than 100 points.
The Pound is closed between two volume levels now: the support 1.3391 – 1.3417 and the resistance 1.3544. Thus, the best solution will be trading after the breakout of one of these volume levels.
The breakout movement must be sharp and on large volume, which will be a stronger and more accurate signal for entering the market. It also will insure against false movement.
While the price is between the two levels, it’s worth to be out of the market.
The Yen showed a rapid fall of the price on Friday and the move was on very large volume and 2 new volume levels were formed: the resistance 112.81 and the support 111.45 – 112.08. Now the price is between these two levels, so the best solution is to wait for a breakdown of one of the volume levels and only then enter the market. The breakout movement must be rapid and on increased/large volume.
USD/CAD fell by more than 180 points and a new level of 1.2732 – 1.2768 was created, in which very large volume is concentrated. Thus, we can consider a sales scenario from this level. We can open short positions after a slight smooth correction up. A stop loss should be placed a little above the resistance. The deal’s potential is more than 150 points.
The Australian dollar, the situation has not changed, the price is still in the consolidation between the two levels: 0.7538 and 0.7649. In this consolidation large volume is concentrated, therefore it is worth waiting for the price to come out of the range and only after that it is possible to consider new deals on this instrument.
Despite a strong price growth on Friday, gold is still in the global consolidation between two levels: the support 1264.40 – 1266.00 and the resistance 1299.00. It is also important to note that large volume is concentrated in this range.
Thus, the best solution for this instrument will be to wait for the price to come out of the consolidation and only after that it is possible to enter the market. The breakout movement must be sharp and on large volume, which will insure us against false movements and will be a more accurate signal for entering the market.
The sentiment: our scenario for the euro is confirmed by the mood of the market. On the Canadian dollar the situation is 50/50, but considering the technical factors, it is worth giving preference to sales. For other instruments, we should wait for the price to come out of consolidations or breakdown of volume levels.
The bottom line: many instruments are located in consolidations or between volume levels, so that we need to wait for breakouts of them and only after that we can consider new positions.