The Euro showed a strong fall and broke down the previous support/lower limit of the consolidation, but failed to continue growing as the new level of support 1.2326 – 1.2342 was formed. This mark contains large volume, so we can resume considering short positions only after its sharp breakdown.
Besides it, the movement must be supported by large volume, which will be a more reliable and accurate signal for entering the market. A stop loss should be placed above the breakdown volume bar. A potential of the deal is 90-100 pips.
The price also corrected up after a creation of the new level of support 1.3868, which contains increased volume. But the growth of the pair was on small volume, so we can’t regard it as a continuation of the uptrend and still should give preference to sales as the price fell down strongly last couple of trading days.
We can enter the market after a confident breakdown of the support level on large volume, so it will insure us from fake move and will be a stronger signal for opening short positions. A stop loss should be placed above the breakdown volume bar. A potential of the deal is more than 100 pips.
The Yen tested the support 108.48, but failed to break it down and after the grew up strongly. Now the pair is trading in the middle of the local consolidation between the support and the resistance 110.43, that’s why the best decision is just to wait for the sure exit of the price from this range. The move must be abrupt and supported by large volume, which will be a more accurate signal for entering the market.
Until that, it is better to stay out of the market.
The Canadian dollar corrected to the support level 1.2488 yesterday, but the fall was smooth, though on increased volume, so that our previous scenario remains the same: long positions after the test and the rebound of the price from the support. The move must be sharp and confident, so it will be a stronger signal for opening new positions. A stop loss should be placed below the support. A potential of the deal is around 90 pips.
The Australian dollar grew up, but the move was smooth and on average volume. Moreover, given the presence of 2 strong volume resistances, we still should consider short positions here. We can enter the market after a test of the level 0.7917 and a strong rebound of the price down. A stop loss should be placed above this level. A potential of the deal is 70 pips.
Gold resumed the price decline yesterday and broke down the support/lower limit of the local consolidation. It should be noted that the fall of the instrument was sharp and supported by the large volume, which is an excellent bearish signal. Moreover, the new volume resistance level 1333.70 – 1337.20 was formed.
Given all of the above factors, now it is worth giving preference to short positions with gold.
Sales can be opened after the test of the resistance level and a sharp rebound of the price down. A stop loss should be placed a little above the mark 1337.20. The potential of the deal is more than 150 points.
The sentiment: the mood of the market still shows that we should trade against the US dollar, but technical factors are quite strong today, so I think that this indicator has not reacted to the market changes yet.
The bottom line: it seems like the market started its reversal, but still we should be careful trading against local trends, even though we have strong reversal signals.