EUR/USD is still trading in the local consolidation of 1.2267 – 1.2360. Yesterday, the pair tested the lower border of the consolidation, then rebounded and is testing the upper one right now. It should be noted that the price growth was on the small volume, so we can not allocate any new level or zone, and given the large volume accumulation within the range, it is better to wait for the price to come out of it.
Nevertheless, now the pair is trading near the level of 1.2360, so we can consider the scenario of a breakout of this mark, which will enable us to open long positions whit the Euro. The breakout 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 under the breakout volume bar. The potential of the deal is about 150 points.
While the price is within the range, it is better to stay out of the market.
Yesterday the Pound grew up on the large volume and the new level of support was created, which contains large volume. It is 1.3823. All these are good bullish signals. But the pair is testing this level now, so we can open long positions only after the appearance of an additional signal.
Such signal is a rebound of the price up after the test of the level of support. The growth of the price must be sharp and supported by the large volume, that will be a more reliable signal for entering the market. A stop loss should be placed below the test of the support. A potential of the deal is around 110-120 pips.
The Yen grew up yesterday, but despite the sharpness of the move, it was on the small volume, so we can’t regard long positions at the moment. Besides it, there are the volume resistance level of 106.39 – 106.50 and the strong downtrend. That’s why we still should give advantage to short positions with this pair.
We can enter the market after a test of the resistance and a keep fall of the price. A stop loss should be placed above the level of resistance. The target is the local minimum.
The Canadian dollar continued growing and broke out the resistance level yesterday. The breakout move was abrupt and supported by the increased volume, which is a good bullish signal. Thus, we should consider exceptionally long positions at the moment.
We can open purchases after a smooth downward correction of the price, in order to get a better entry point. A stop loss should be placed below the beginning of the yesterday’s breakout movement. A potential of the deal is more than 100 points.
The Australian dollar remained trading within the local consolidation between the level of support 0.7717 and the level of resistance 0.7790 – 0.7800. Thus, our previous scenario is still relevant: we can consider new positions here only after a sure and sharp exit of the price from the range. The breakout move must be supported by the large volume, which will be a more reliable signal for entering the market.
While the pair is in the range, we should stay out of the market.
The price did not show any significant move yesterday and is still locked between 2 strong levels. They are the support of 1305.60 and the resistance 1327.20 – 1330.00. Both levels contain large volume, that’s why the best decision is just to wait for a breakout of one of these levels, which will be a good signal for entering the market.
The breakout movement must be sharp and supported by the large volume, in order to avoid any fake moves. Moreover, it will be a more secure sign for opening new deals with gold.
Until that, we should stay out of the market.
The sentiment: the mood of the market totally acknowledges our scenarios with EUR/USD, GBP/USD, USD/JPY, USD/CAD, which is a good confirming signal for us. Thus, these instrument should in priority today.