As predicted, EUR/USD continued its decline and broke down the support/lower limit of the consolidation. Thus, we should give preference to short positions at the moment.
It is also necessary to allocate the new resistance level of 1.2250 – 1.2267, in which the large volume is concentrated, so this level will be an excellent place for a stop loss.
Sales can be opened after a small and smooth correction of the price upwards to get a more profitable entry point to the market and, as a consequence, a more favorable risk/profit ratio. A stop loss should be placed a little above the new resistance level. The potential of the fall is about 150 points.
The Pound showed a significant drop and broke down the previous support/lower boundary of the range on the large volume, which is a great bearish signal. The only issue is that the volume was evenly spread throughout the move, so we can’t highlight any new volume level or zone.
But anyway, given all the technical factors, we should give advantage to short positions with this instrument. We can enter the market after a smooth upward correction of the price and a resumption of the sharp fall supported by the large volume. It will be a more accurate signal for opening sales. A stop loss should be placed above the breakdown volume bar. A potential of the deal is around 100 points.
The price fell down on the increased volume yesterday and is located a little bit above the lower limit of the local consolidation 106.52. Therefore, we can regard a scenario of its breakout which will be a great bearish signal and will consent us to open short positions.
The breakdown move must be abrupt and supported by the large volume. A stop loss should be placed above the breakdown volume bar. A potential of the deal is 100 points.
The uptrend with the Canadian dollar is going on, moreover, the growth of the pair was supported by the large volume, which is a good signal of its continuation. Thus, we should give preference to long positions at the moment. We can enter the market after a smooth correction of the price down, in order to obtain a better entry point. A stop loss should be placed below the yesterday’s minimum. A potential of the deal is 120 pips.
The pair dropped down and broke out the previous level of support/lower boundary of the consolidation, which is a good bearish signal. Beside it, the new volume level of resistance was created, it’s 0.7790 – 0.7800.
Given all these facts, we should consider exceptionally short positions with the Australian dollar. We can enter the market after a smooth upward correction of the price in order to get a better entry points. A stop loss should be placed above the new resistance. A potential of the deal is around 100 points.
The price trading in the local consolidation, where large volume is concentrated, so we should wait for a sure exit of the price from it. But given the presence of the strong resistance level and the recent sharp fall of the price, we still must give preference to sales with gold.
Short positions can be opened after a breakdown of the lower limit of the local consolidation. A stop loss should be place above the upper boundary of the range. The target of the deal is the level 1307.80.
The sentiment: the mood of the market confirms all our deals except gold, which is a great additional signal for us. As with gold, despite this fact, we still should give advantage to short positions, as all technical factors tell so.