After the release of the payrolls last Friday, EUR/USD fell, but is still locked in the local consolidation between the support level 1.2350 – 1.2365 and the resistance 1.2520. It should be noted that the price fall was on average volume, and given the large accumulation of volume within the range, this currency pair can be traded only after the price comes out of the consolidation.
The breakout movement must be sharp and swift, and also supported by large volume, which will be a more reliable signal for entering the market.
While the price is within the range, it is better to stay out of the market.
The Pound also showed a fairly sharp fall, however, the price movement was on small volume, so we can not allocate any new volume level. Moreover, there is a relevant uptrend with this pair.
In general, the situation with this instrument is rather confusing: on the one hand, the price has fallen sharply, but on small volume, on the other – it is not worthwhile to trade against the trend.
Thus, the best solution is to stay out of the market with this currency pair.
The Yen has grown on large volume, which allows us to consider the scenario of opening long positions with this currency pair. Nevertheless, purchases can be opened only after a sure breakdown of the new resistance level 110.43, in which large volume is concentrated.
The breakout movement must be sharp and supported by large volume. A stop loss should be placed below the breakout volume bar. The target is 111.85.
The price showed a rapid growth on very large volume. Also, the new support level 1.2360 – 1.2374 was created, in which significant volume is concentrated.
Thus, now it is worth giving preference to long positions. Purchases can be opened after a small and smooth correction of the price down. A stop loss should be placed below the support level. The target is 1.2500.
The Australian dollar continued its fall after the release of the labor market data in the United States. The price movement was sharp and supported by large volume. It is also necessary to allocate the new level of resistance 0.7943 – 0.7957, in which significant volume is concentrated.
That’s why it is worth giving preference to short positions at the moment. Nevertheless, it is worthwhile to enter the market after an appearance of an additional signal, as there is a strong uptrend. Such a signal is a test of the resistance level and a rapid rebound of the price downwards. A stop loss should be placed a little above the resistance. The target is 0.7815.
Gold fell stronger than other currencies, but could not break down the support 1328.70 – 1331.60 and is trading near this mark now. It is worth noting that the price fall was on very large volume + there was no reaction (rebound) from support. Thus, we should consider the scenario of a breakdown of this level, which will be an excellent signal for opening sales.
The breakout movement must be confident and sharp, and also supported by large volume, which will be a more accurate signal for entering the market. A stop loss should be placed just above the breakdown volume bar. The potential of the deal is more than 170-180 points.
Potentially good deals: USD/JPY, USD/CAD, AUD/USD, XAU/USD
Stay out of the market: EUR/USD, GBP/USD