EUR/USD grew up rapidly yesterday, after which the price had tested the resistance 1.1838 – 1.1846 and rebounded down. At the moment the pair is locked between this level and the support 1.1729, that’s why the best decision will be just to wait for the exit of the price from this local range. The breakout move should be abrupt and supported by large volume, so it will be a more reliable signal.
Until that it is better to stay out of the market.
The situation for the Pound is similar to the one above: the price grew up, but is located in the local consolidation between the support 1.3318 – 1.3544. Large volume is concentrated in this range, so that we should wait for the exit of the price from it and after that we will be able to consider new positions. The movement must be sharp and supported by increased volume.
While the pair is located in this range, we should skip this pair from our trading plan.
This currency pair is trading a little bit below the resistance level 112.72 – 112.86, so that our previous scenario of opening short positions is still actual. We can enter the market after a resumption of the fall of the price from this level. A stop loss should be placed above the resistance. A potential of the deal is more than 100 points.
The Canadian dollar is still located in the local consolidation between two strong volume levels: the support 1.2723 and the resistance 1.2906. That’s why the best decision will be waiting for the sure exit of the pair from the range.
Given that the price is located a little below the resistance, the scenario of the breakout of this level seems more possible.
AUD/USD is in the local consolidation, in which large volume is concentrated. Also it is worth noting a strong support level 0.7614 – 0.7626, in which fairly significant volume is also concentrated. Thus, before the breakdown of this mark, we should give preference to long positions for this currency pair.
We can open purchases after the resumption of a growth of the price on increased volume and a breakout of the local maximum/upper limit of the consolidation. The breakout movement must be strong and sharp. A stop loss should be placed just below the beginning of the bullish impulse. The potential of the deal is approximately 60 points.
Even despite the breakout of the resistance/upper limit of the range, the situation for gold is pretty difficult as the breakout movement was smooth and on small volume. It is too dangerous to trade this move, that’s why we need to wait for strong additional signal. Such a signal is sharp bullish impulse on large volume. Preferably, if the price corrects down before the abrupt growth. A stop loss should be placed below the beginning of the move. A potential of the deal is more than 120 points.
The sentiment: this indicator confirms our scenario for the Australian dollar and gold, this is a good additional signal for us. For the Yen long positions should be in priority (according to the sentiment), but until the breakout of the resistance, we should give advantage to short ones.
The bottom line: the situation on the market is quite difficult for trading as almost all pairs are in consolidations or trading on small volume. Anyway, USD/JPY, AUD/USD and gold are interesting for trading today.