The Euro remained trading within its global consolidation between the level of support 1.2209 and the level of resistance 1.2520. The large volume is concentrated inside this range, so we should wait for the exit of the price from the consolidation, which will be a great signal for entering the market and opening new deals here.
The breakout movement must be sharp and supported by the large volume, in order to avoid fake move. Until that, we should stay out of the market.
The Pound showed a quite abrupt growth yesterday, but the movement was on the small volume, so we can’t both consider long positions and highlight any new volume level.
Moreover, the pair is located in the consolidation between the level of 1.3795 and the level of 1.4140. As can be seen from the chart below, large volume is concentrated in this range, so the best decision is just to wait for a confident exit of the price from this consolidation. The move should be keen and supported by the large volume, which will be a more reliable signal for entering the market.
While the price is trading in this range, we should omit this pair from our trading plan.
The price resumed falling. The move was abrupt and supported by the average volume, so we can’t highlight any new volume level or zone. On the other hand, there is a strong downtrend with the Yen, so we may consider the scenario of opening sales here.
We can enter the market after a continuation of the fall, but the move must be supported by the large volume, which will be a more secure signal for opening new positions. A stop loss should be placed above the beginning of the strong fall. A potential of the deal is more than 100 points.
We need to point out the new volume resistance level of 1.2750 that was created yesterday. So now the pair is locked between this level and the previous support of 1.2629 – 1.2642.
Nevertheless, given the presence of the strong local uptrend, I still prefer a scenario of opening long positions here. We can enter the market after a sure breakout of the level of resistance on the increased volume. A stop loss should be placed below the breakout volume bar. A potential of the deal is more than 120 pips.
The Australian dollar is still locked within its range 0.7770 – 0.7987. Anyway, considering that fact that the price is located a little bit above the support, we can deliberate the scenario of a breakdown of this mark, which will allow us to open short positions.
The movement must be sharp and supported by the large volume, which will be a more accurate signal for entering the market. A stop loss should be placed above the breakdown volume bar. A potential of the deal is more than 100 pips.
The price went up yesterday, the growth of gold was supported by the small volume, so we should consider it as a technical correction of the instrument. Moreover, there is a strong volume resistance level of 1333.40 – 1335.80, so we still must give preference to short positions with gold.
Sales can be opened after a test of the level and a sharp rebound of the price down. A stop loss should be placed above the resistance. The target of the deal is the level of 1307.80.
The sentiment: this indicator confirms our scenarios with USD/JPY and USD/CAD which is a good additional signal. With all other pairs the situation remains tough as they are located in ranges.