The Euro showed a sharp drop of the price yesterday and is testing the lower limit of the global consolidation/support level of 1.2209 now. It is worth noting that the fall of the pair was supported by the large volume, so we need to consider a scenario of a breakdown of this mark, which will be an excellent bearish signal and allow us to open short positions with this currency pair.
The breakout movement must be swift and sharp, and also supported by the large volume, which will be a more reliable and strong signal for entering the market. A stop loss should be placed just above the breakdown volume bar. The potential of the deal is 140-150 points.
The Pound also fell down yesterday, the volume during the move was medium + evenly spread, so we can’t point out any new levels or zones. Moreover, the price is still locked in the consolidation between the support of 1.3795 and the resistance of 1.4140, in which large volume is concentrated.
That’s why our previous scenario is still relevant: we can consider new deals only after a sharp and sure exit of the price from the range. The breakout movement must be on the large volume, which will be a more secure sign for entering the market.
While the pair is located in the range, it is better to stay out of the market.
The situation with the Yen is a bit confusing: the price grew up sharply, but then this move was absorbed by the smooth fall. In general, the pair is trading in the local consolidation 106.52 – 107.77 right now. Hence, the best decision is just to wait for the price to come out from the range and only after that we can deliberate new deals here.
The breakout must be sharp and on the large volume, which will be a more accurate signal for entering the market.
Until that, it is better to be out of the market.
The Canadian showed a confident growth and broke out the previous resistance. Moreover, the movement was supported by the large volume, that is a strong bullish signal. Also it is necessary to highlight the new volume support level 1.2714 – 1.2731. So all factors point that we should consider exceptionally long positions.
We can open purchases after a smooth correction of the price down, in order to obtain a more profitable entry point. A stop loss should be placed below the support. A potential of the deal is 130-140 points.
The pair fell down sharply and on the increased volume and is trading near the support/lower boundary of the range 0.7770. Given such a strong downward move, we can consider the breakdown of this mark, which will be a great bearish signal and will allow us to open short positions.
The breakout must be keen and supported by the large volume, which will be a more reliable signal for entering the market. A stop loss should be placed above the breakdown volume bar. A potential of the deal is around 100 points.
Gold also subsided yesterday on the large volume and broke down the previous support level/lower boundary of the local range. Moreover, the new volume level of resistance was created, it is 1327.20 – 1330.00. Given all these factors, we should regard exceptionally short positions with this instrument.
We can open sales after a smooth correction of the price up on the small volume, in order to get a better entry point. A stop loss must be placed above the fresh level of resistance. The target is the global level of support of 1307.80.
The sentiment: the mood of the market confirms our deals with EUR/USD, USD/CAD and AUD/USD which is a good additional signal. Despite the fact, that long positions should be in priority with gold (according to this indicator), we must give preference to sales as all technical factors confirm it.