After the test of the resistance level, EUR/USD at last broke out this mark. The price growth was sharp and on large volume, which is an excellent bullish signal and allows us to consider the scenario of opening long positions for this currency pair.
Purchases should be opened after a small smooth price correction down to get a more profitable entry point and, as a consequence, a better risk/profit ratio. A stop loss should be placed below the beginning of the breakout movement with a small margin. The potential of the deal is about 100 points.
The situation for the Pound remains the same: the price is locked between two strong levels. They are the support 1.3318 and the resistance 1.3544. Also we should note the presence of large volume inside this range, so that we should wait for the exit of the price from the consolidation which will be a good signal for entering the market.
The breakout movement must be sharp and supported by large volume, which will be a more reliable and accurate signal for opening new positions.
While the pair is located in the local consolidation, we should stay out of the market.
The Yen continued its local growth, but is still located in the consolidation 112.08 – 113.65, so that our previous scenario remains the same – we can open new deals only after a confident breakout of the boundaries of the consolidation. The movement must be sharp and supported by increased/large volume. This will be a more accurate signal for entering the market.
USD/CAD corrected down yesterday, but the movement was smooth and on average volume, so we can’t consider it as a strong rebound of the price from the resistance 1.2906. Overall, the price is located in the middle of the range between the resistance and the support 1.2723.
That’s why we can enter the market only after the breakout of the consolidation.
The price is still trading in the local consolidation a little bit above the support 0.7614 – 0.7626, which contains large volume. So until its breakdown we should give advantage to long positions. We can enter the market after the breakout of the local maximum. The growth must be abrupt and supported by increased volume. A stop loss should be placed below the beginning of the sharp growth. A potential of the deal is up to 70 pips.
The local uptrend for gold continues, but the price is growing smoothly and on small volume, so we can’t point out any new volume levels or zones, which makes trading more difficult. On the other hand, the breakout of the previous resistance is a quite good bullish signal, so at the moment we should give preference to long positions.
We can enter the market after a resumption of the price on large volume. Ideally, if the price corrects down and then resumes its growth. A stop loss should be placed below the beginning of the abrupt growth. A potential of the deal is 110-120 pips.
The sentiment: this indicator confirms our scenarios for EUR/USD, AUD/USD and gold. For GBP/USD, USD/JPY and USD/CAD long positions should be in priority (according to the sentiment).
The bottom line: the best deal right now is for the Euro. For all other instruments we need to wait for exits from ranges or appearance of large volume.