The Euro grew up confidently yesterday and is testing the huge volume zone at the top of the chart. The upward move was supported by the increased volume, but it was evenly spread throughout the movement, so we can’t point out any new volume level or zone.
Given that the price is trading at the volume accumulation, we can consider 2 possible trading scenarios:
Anyway, we should wait for a strong and sharp reaction of the price on this volume zone.
The Pound also corrected upwards, but the movement was smooth and on the small volume, so we can’t regard it as a signal for purchases. Moreover, given the recent sharp fall of the pair on the large volume, we still should give advantage to short positions.
We can enter the market after a stoppage of the correction and a resumption of the abrupt fall of the price supported by the large volume, which will be a more accurate signal for entering the market. A stop loss should be placed above the beginning of the drop. A potential of the deal is around 100 points.
USD/JPY showed a precipitous drop of the price yesterday and broke down the lower limit of the consolidation. Moreover, the breakout movement was supported by the large volume, which is a strong bearish signal. In addition, it is necessary to allocate the new resistance level of 106.39 – 106.50, in which the large volume is concentrated.
Considering all the above factors, it is necessary to consider only sales with the Yen. Short positions can be opened after a small and smooth correction of the price upwards to get a more profitable entry point. A stop loss should be placed a little above the resistance level. The potential of the deal is more than 100 points.
The price tested the global resistance level 1.2900, but failed to break it out and then showed a strong fall on the large volume. At the moment the pair is locked between 2 strong volume levels: the global resistance and the support 1.2714 – 1.2731.
Thus, the best solution with the Canadian dollar is just to wait for a confident exit of the price from the range. The movement must be supported by the large volume, which will be a more reliable signal.
While the pair is located inside this range, we should stay out of the market.
The Australian dollar also went up yesterday, but the growth of the price was smooth and on the average volume. Given that there is the strong resistance level of 0.7790 – 0.7800 a bit higher, we should give preference to short positions with this instrument.
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 resistance. The potential of the deal is 90-100 points.
We should highlight the new support level of 1305.60, in which the large volume is concentrated. After the formation of this mark, the price grew up sharply and is trading between two strong volume levels: the support and the resistance of 1327.20 – 1330.00.
Hence, the best decision is just to wait for a sure breakout of one of the levels, after which it will be possible to enter the market. The breakout movement must be sharp and supported by the large volume, which will be a more reliable signal for entering the market.
While the price is located in this consolidation, it is better to stay out of the market.
The sentiment: the mood of the market confirms our trading scenarios with GBP/USD, USD/JPY and AUD/USD, which is a great additional signal.