EUR/USD grew up in the “thin” market and is close to resistance level 1.1896 now, in which increased volume is concentrated. Given that the price was not able to continue falling + there is an upward local trend, it is worth giving preference to long positions on this instrument.
Purchases can be opened only in case of breakout of the resistance level on large volume. Also, the movement must be sharp and confident which will be a more accurate signal for entering the market. A stop loss should be placed just below the breakdown volume bar. The potential of the deal is about 90-100 points.
Nothing has changed with the Pound as it is still located in the local consolidation 1.3318 – 1.3544, where large volume is concentrated. That’s why the best decision is to wait for the exit of the price from this range, which will allow us to consider new deals with this instrument. The breakout movement must be abrupt and supported by large volume, which will insure us from fake moves.
The Yen is locked between two strong levels: the support 112.08 and the resistance 113.65. Large volume is concentrated in this consolidation, so the exit of the price from it will be a great sign for entering the market. The breakout must be sharp and on increased volume, which will be a more secure signal for opening new positions here.
The Canadian dollar tested the resistance level and fell down sharply. Also we should adjust the resistance, now it is the level 1.2770 – 1.2786. Large volume is concentrated within this level, so until its breakout we should five preference to short positions. We can enter the market after a smooth upward correction of the price. A stop loss should be placed above the resistance. A potential of the deal is more than 100 pips.
The uptrend for the Australian dollar continues, so that we should give advantage to long positions with this currency pair. We can enter the market after a smooth downward correction in order to get a better entry point. A stop loss should be placed below the beginning of the last week’s abrupt growth. A potential of deal is around 60-70 pips.
Gold continued growing, so we can state that the local uptrend with this instrument is going on. Also we should note that large volume accumulation is located at the bottom of the chart, which only strengthens our scenario of opening long positions.
We can enter the market after a smooth downward correction on small volume, so we will obtain a better entry point and, as a consequence, more profitable risk/profit ratio. A stop loss should be place below the Friday’s sharp growth of the pair. A potential of the deal is around 100-110 pips.
The sentiment: this indicator confirms our scenarios for the Euro, gold, Canadian and Australian dollars, which is a great additional signal. For the Pound and the Yen we need to wait for the exit from ranges.
The bottom line: the situation on the market did not change a lot, the most interesting deals are for the EUR/USD, XAU/USD, USD/CAD, AUD/USD.