The situation for the Euro is pretty tough for trading as the price is going down, but the movement was and is smooth and volume on the market is very small, so there is no good place for putting our stop loss. It is very difficult to consider any deals in such situation, that’s why we need to wait for the appearance of large volume and watch for the reaction of the price on it. After that we can consider new positions according to the fresh volume moves of the pair.
The price has broken down the previous level of support yesterday, but the move was stopped by the new one – 1.3360 – 1.3381. This level contains large volume, but the price is trading inside it, so we can and should consider the scenario of its breakdown that will enable us to open short positions.
The movement must be sharp and supported by large volume, which will be a more accurate and confident signal for entering the market. A stop loss should be placed above the breakdown volume bar. The target is the global support 1.3221 – 1.3241.
The Yen had tested the volume support zone 111.45 – 112.08 and rebounded up yesterday, but both moves were on small volume and smooth, so that it is impossible to consider any new trading scenario for this currency pair. That’s why the best decision will be just waiting for the appearance of large volume and creation of new volume levels, which will help us to predict the further behavior of the price.
USD/CAD showed a sharp growth on the background of news. The movement was on increased volume, which is a good bullish signal, but we can’t open purchases for this instruments until the price breaks out the resistance level 1.2906. The breakout move must be supported by large volume in order to avoid fake breakouts. A stop loss should be placed below the breakout volume bar. A potential of the deal is around 120 points.
The price continued falling and is testing the support level 0.7538 at the moment. If the price breaks down this level, it will give us an opportunity to consider short positions for this currency pair. The move must be supported by increased volume, which will be a more sure and reliable signal. A stop loss should be placed above the breakdown volume bar. A potential of the deal is more than 70 points.
The price broke down the previous global support level/lower limit of the consolidation and is trading below this level at the moment. The price movement was sharp, which is a good bearish signal. It is also necessary to highlight the resistance level 1269.20, in which large volume is concentrated and which was tested, after that the price began a rapid breakdown fall.
Thus, now it is worth giving preference to short positions on gold. Sales can be opened after a small and smooth correction of the price upwards to get a more profitable entry point and, as a consequence, a better risk/profit ratio. A stop loss should be placed a little above the resistance 1269.20. The deal’s potential is more than 150 points.
The sentiment: our scenarios for USD/CAD, AUD/USD and XAU/USD are confirmed, so these 3 instruments should be in priority today.
The bottom line: the situation on the market became better as a plenty of new scenarios appeared.