The Euro is located in the local consolidation a little bit below the level of resistance 1.1896. We should not that this range contains large volume, so the exit of the price from it will be a good signal for entering the market. Given the location of the price near the upper limit of it, we should give preference to the scenario of a breakout of the resistance, which will allow us to consider long positions.
The breakout movement must be sharp and supported by large volume, which will be a more reliable and accurate signal for opening long positions. A stop loss should be placed below the breakout volume bar. A potential of the deal is around 100 pips.
The Pound is still locked in the consolidation 1.3318 – 1.3544, where large volume is concentrated. That’s why the exit of the price from it can be considered as a great signal for opening new deals. The breakout movement must be abrupt and supported by increased/large volume, in order to insure us from fake breakouts.
While the price is in the range, we should skip this instrument from our trading plan.
The Yen continued its smooth downward correction of the price and is going to the middle of the local consolidation 112.08 – 113.65, so the only possible trading scenario is just to wait for the exit of the price from this range. The breakout movement must be abrupt and supported by large volume in order to avoid fake moves.
Until that it is better to stay out of the market.
Our previous scenario was totally executed and the price went down sharply yesterday. That’s why we should give preference to short positions. We can enter the market after a smooth upward correction of the price and a resumption of the fall on large volume. In such case we will be able to place a stop loss above the beginning of the abrupt fall. A potential of the deal is more than 100 pips.
The Australian dollar continued its smooth growth, so the uptrend is going on. Unfortunately, the move was on small volume, so we can’t point out any specific volume level, anyway, we should give preference to long positions.
We can enter the market after a smooth downward correction of the price and a resumption of the sure growth. A stop loss should be placed below the beginning of the abrupt growth with a little margin. A potential of the deal is 60 pips.
The uptrend with gold continues. We should note that the price growth is confident and rapid, which is a good bullish signal. It is also necessary to allocate a large amount at the bottom of the chart, which only increases the likelihood of further price move up. Thus, now it is worth considering exceptionally long positions with this instrument.
Unfortunately, we can not open purchases from the current level, since the stop loss will be too large. It is necessary to wait for a smooth descending correction of the price on small volume in order to obtain a more advantageous entry point. A stop loss should be placed under the level 1271.80, where increased volume is concentrated, which has pushed the price further up. The potential of the deal is 140-150 points.
The sentiment: the mood of the market did not change a lot yesterday, so our main scenarios are confirmed. Only with GBP/USD and USD/JPY we can’t use it as these pairs are in ranges.
The bottom line: the market is still “thin” after the holidays, so we should be extremely careful during trading these days, some unexpected movement can happen.