On Monday EUR/USD continued its decline and now the price is testing the support level/lower limit of the consolidation 1.2350 – 1.2365. It is also worth noting that large volume accumulation is concentrated in this range, so the exit of the price from it will be an excellent signal for entering the market. Given that the price is testing the lower limit of consolidation at the moment, we can consider the scenario of a breakdown of this mark, which will allow us to open sales.
The breakout movement must be sharp and supported by the large volume, which will be a more reliable and accurate signal for entering the market. A stop loss should be placed just above the breakdown volume bar. The potential of the deal is about 110 points.
The price continued falling yesterday, but the drop of the pair was and is on medium volume, so we can’t point out any new specific volume level. Anyway, given such a confident fall we should consider the scenario of opening short positions.
We can enter the market after a smooth upward correction and a resumption of the fall on large volume, which will be a good signal for opening sales. A stop loss should be placed above the beginning of the abrupt move with a little margin. A potential of the fall is 100-110 pips.
The Yen could not breakout the resistance and showed an abrupt fall on Monday. The drop of the price was supported by large volume, which is a strong bearish signal. At the moment the pair is located near the support 108.48, that’s why we can open short positions after a confident breakdown of this level on increased volume. A stop loss should be placed above the breakdown volume bar. A potential of the deal is more than 100 pips.
The Canadian dollar continued its growth and the new level of support 1.2488 was created. Both the move and the formation of the new level were on significant volume, which is a good bullish signal. Given these facts, we should consider the scenario of opening long positions. We can enter the market after a smooth downward correction of the price and a resumption of the sharp growth. A stop loss should be placed below the new support. A potential of the deal is 80-90 pips.
The price fell down on increased volume and the new resistance was created. It is the level 0.7917. The previous resistance level 0.7943 – 0.7957 is still actual too. That’ s why we should give preference to short positions until the breakout of these levels.
We can enter the market after a smooth upward correction of the price in order to get a better entry point. A stop loss should be placed above the fresh resistance. A potential of the deal is around 70 pips.
After the test of the support level 1328.60 – 1331.60, the price grew up strongly, but on small volume, so we can’t consider long positions at the moment. Moreover, the pair is located in the local consolidation between the support and the resistance 1351.00. Also we should point out that large volume accumulation is concentrated in this range.
Given all the facts above, we are able to regard new positions with gold only after the sure exit of the price from the range. The move must be supported by large volume, which will be a more reliable signal.
While the pair is in the consolidation, it is better to stay out of the market.
The sentiment: this indicator confirms our scenarios with USD/JPY and USD/CAD. We need to get additional signals with all other instruments in order to be able to enter the market.
The bottom line: the situation on the market is quite good for active trading as there are a lot of volume levels that can be used in trading.