The situation for the Euro remained the same as the price moved on small volume, so that we can’t point out any fresh volume level or zone. That’s why we should wait of the appearance of large volume on the market and creation of new volume level which can be used as a place for our stop loss.
Until that, it is too difficult to predict the further move of the price.
The Pound continued falling and broke down the previous level of support, but the move was smooth and on small volume, so that we can’t trade this movement at the moment. On the other hand, this is a good bearish signal so we should consider the scenario of opening short positions.
Sales can be opened after an appearance of strong bearish impulse which contains large volume. It will be a great signal for the continuation of the fall. A stop loss should be placed above the beginning of the abrupt fall. A potential of the deal is 120-130 pips.
USD/JPY is trading in the local consolidation a little bit above the level of support 113.16 – 113.25, where large volume is concentrated. So that our previous scenario remains the same: long positions after the resumption of the growth. Especially, if the price tests the support before that. A stop loss should be placed below the level 113.16. A potential of the deal is 120+ pips.
The pair is still located below the resistance level 1.2906, so the scenario remained the same – long positions after a confident breakout of the level. The move must be supported by large volume, so it will a more reliable and accurate signal for entering the market. A stop loss should be placed below the breakout volume bar. A potential of the growth is more than 150 pips.
The Australian dollar corrected up and broke out the resistance. The movement was on very small volume, so we can’t consider it as a strong bullish signal. Given the local downtrend, we should deliberate the scenario of opening short positions after a breakdown of the local minimum. A move must be sharp and strong. A stop loss should be placed above the breakdown volume bar. A potential of the fall is 60-70 pips.
Gold tested the support level/local minimum 1244.30, but could not finally breakout this mark and corrected back up. Also it is worth noting that the movement was on small volume, so this breakdown is regarded as false. At the moment, the price is just above the local minimum.
Thus, our previous scenario remains actual: we can open short positions on this instrument, but only after a sharp and strong breakdown of the local minimum. The move should be on large volume, which will insure us against false breakdown and will be a more accurate and reliable signal for entering the market. A stop loss should be placed above the volume breakout bar. The potential of the deal is more than 200 points, which is an excellent indicator.
The sentiment: this indicator confirms our scenarios for USD/JPY, USD/CAD, AUD/USD and XAU/USD. The mood of the market for EUR/USD and GBP/USD are equal, so that we need to wait for some additional signals.
The bottom line: as predicted the market corrected yesterday, but the whole situation on the market remained the same. USD/JPY and XAU/USD are in priority.