The Euro tested the local maximum, but could not break it yesterday. Moreover the new resistance level of 1.2411 – 1.2426 was created at the top of the chart, in which the large volume is concentrated. After the formation of this zone, EUR/USD showed a rapid fall, which was also on the large volume, which is an excellent bearish signal.
Thus, all factors indicate that we should give preference to short positions with the Euro. Sales can be opened after a small and smooth correction of the price upwards, which will allow us to obtain an acceptable entry point to the market. A stop loss should be placed just above the resistance level. The target of the deal is a local minimum.
The Pound also dropped down sharply and on the increased volume yesterday. The price broke down the previous level of support, now that the road beneath is open, we should give preference to short positions with this currency pair.
We can enter the market after a smooth upward adjustment of the price in order to obtain a better entry point. A stop loss should be placed above the local maximum. A potential of the deal is more than 120 points.
The Yen rose up and broke out the previous resistance level, but even despite this fact we can’t open long positions at the moment. The reason is the small volume during the growth of the pair, which means the weakness of buyers.
Moreover, the price is trading in the local consolidation of 105.43 – 107.83, where large volume is concentrated. Thus, the best decision with this currency pair is just to wait for a sure exit of the price from this range. The breakout movement must be supported by the large volume, which will be a more secure signal for entering the market.
Nothing has changed with the Canadian dollar as the price remained trading within its local consolidation between the support of 1.2818 and the resistance of 1.2994. Therefore, our previous trading scenario is still actual – we must wait for the confident exit of the price on the large volume from this range, that will be a great signal for entering the market.
Until that, we should stay out of the market.
The Australian dollar is still locked between two strong volume levels. They are the support of 0.7717 and the resistance of 0.7878. That’s why we can regard new deals here only after the breakout of one of these boundaries, which will allow us to enter the market. The move must be sharp and supported by the large volume, which will be a more reliable signal for opening new positions.
The price fell down and broke out the previous level of support. Moreover, the movement was sharp and supported by the large volume, which is a more reliable signal for entering the market and opening short positions here.
We can enter the market after a smooth upward correction of the price up in order to get a better entry point. A stop loss should be placed above the yesterday’s breakdown volume bar. The target is the global level of support 1305.60.
The sentiment: this indicator shows that retail trader started transferring from short positions into long ones with the Euro and the Pound. It is a good signal for our scenarios. With gold, the situation remains the same, but given all technical factors, we should give advantage to short positions.