Even despite the sharp fall of the price, the situation for the Euro is still tough as volume on the market is very small, so that new levels are impossible to point out. It leads to the absence of reliable places for setting a stop loss. In such case the best decision will be waiting for the appearance of large volume and formation of new volume levels that can be used for trading.
The Pound continued its smooth fall, but the move was and is on small volume, so that we can’t trade it at the moment. Of course, given the recent breakdown of the support, we should give preference to short positions, but it is necessary to get a strong additional signal to be able to enter the market.
Such a signal is a strong bearish impulse supported by large volume, which will be a more accurate and reliable signal that the downtrend for GBP/USd continues. A stop loss should be placed above the beginning of the fall. A potential of the deal is around 110-120 pips.
During the Asian session, the price tested the support level 113.16 – 113.25 and then rebounded. Now the pair is trading in the local consolidation just above this level. It should also be noted that fairly large volume is concentrated in this range. Thus, the best scenario is to wait for the price to come out of the consolidation, but given that the there is quite a strong uptrend, it is worth giving preference to purchases for this currency pair.
Long positions can be opened after the resumption of a confident and sharp growth of the price from the level of support. A stop loss should be placed slightly below the level 113.16. The growth potential is more than 120 points.
The situation for USD/CAD remained the same as the price showed an abrupt growth but is still located below the level of resistance 1.2906. That’s why our previous scenario is still actual: we should open long positions after a confident and sharp breakout of the level of resistance. The move must be supported by large volume, so it will be a stronger signal. A stop loss should be placed below the breakout volume bar. A potential of the deal is more than 150 pips.
The pair continued its growth on small volume and now is located in the middle of the local consolidation. The lower boundary of the range is 0.7503, the upper one – 0.7620 – 0.7637. Given this fact, the scenario of trading AUD/USD us pretty simple: we should wait for the confident exit of the price from the range on increased/large volume.
While the pair is in the consolidation, we should stay out of the market.
The downtrend for gold continued as the price finally broke down the previous support. But the further fall of the price was stopped by the new support – 1236.80, where increased volume is concentrated. Moreover, the pair rebounded up after its formation.
But still, given the strong downtrend we should consider the scenario of the breakdown of the new support, which will be a great bearish signal for us. The move must be keen and supported by large volume in order to avoid fake movements. A stop loss should be placed above the breakdown volume bar. A potential of the deal is more than 200 pips.
The sentiment: the mood of the market confirms our scenarios for USD/JPY, USD/CAD and XAU/USD, so these currency pairs should be in priority today.
The bottom line: volume on the market is still small, so nothing has change from Monday. The Yen and gold are the most interesting instruments for trading today.