The Euro showed fairly rapid growth yesterday and tested the resistance level 1.2076. Despite the fact that the pair could not break this mark, now it is necessary to consider exceptionally long positions with this instrument, because the price did not rebound down, but stayed trading near this level. Thus, we can conclude that big players still want to push the price higher.
Long positions should be opened after the breakout of the resistance level. The breakout movement must be sharp and on large volume, which will be a more accurate signal for entering the market. A stop loss should be placed under the breakout volume bar. The potential of the deal is more than 100 points.
After the test of the level of support 1.3498 – 1.3513, the price rebounded up and is located above this level. Also we should note that large volume is concentrated in the support, so until its breakdown we should give preference to long positions.
We can enter the market after a smooth downward correction of the price in order to get a better entry point. The fall must be on small volume. A stop loss should be placed below the support level. A potential of the deal is around 120-130 pips.
The Yen is located in the middle of its local consolidation, so nothing has changed here and we can trade this currency pair only after a confident exit of the price from this range. The breakout move must be abrupt and supported by large volume, in order to avoid fake breakouts. Moreover, it will be a more reliable and stronger signal for entering the market.
The price showed a smooth fall yesterday, so our scenario of opening short positions is actual, but at the moment we can’t enter the market. It is necessary to wait for an additional signal – strong bearish impulse. After that we will be able to open sales with a stop loss placed above the beginning of the abrupt fall. A potential of the deal is around 80 pips.
We need to point out the new support level here, it is 0.7826 – 0.7840. Large volume is concentrated in this level, so it is a good place for putting our stop loss. A strong uptrend only strengthens our scenario of opening long positions.
We can enter the market after the test of this level and a rebound of the price up. A stop loss should be placed below the support level. A potential of the deal is 50 pips.
Gold showed a strong growth and broke out the previous resistance level. We should note that the move was sharp and supported by large volume, so it is a great bullish signal for us. Moreover, the new support level was created, it is 1313.50 – 1316.60, which also contains large volume and can be used as a reliable place for a stop loss.
Given all the factors above we should give advantage to long positions. We can enter the market after a smooth downward correction of the price in order to obtain a better entry point. A stop loss should be placed below the support level with a little margin. A potential of the deal is around 120 pips.
The sentiment: this indicator is still confirms all our scenarios, which is a good additional signal for us. The situation with the Yen is unclear, so we should wait for the exit of the price from the range.
The bottom line: today the payroll will be released, so I advise you to be extremely careful and enter the market after it will get calm.