The euro showed a significant price decline on Friday and broke down the previous support level, which is a good bearish signal. Moreover, the fall was on the increased volume, which only strengthens its importance. However, the downward movement was stopped by the new support level of 1.2263.
Thus, it is possible to open short positions only after a sure breakdown of this mark on the large volume. A stop loss should be placed just above the breakdown volume bar. The potential of the deal is about 100 points
The Pound continues trading within its local consolidation of 1.3890 – 1.3994, in which the large volume is concentrated. Thus, our previous scenario remains relevant, new deals can be considered only after a confident exit from this range.
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 within this range, it is better to stay out of the market with the Pound.
The Yen also remained trading within its local range of 105.43 – 107.83, so with this instrument we must wait for the breakout of one of the consolidation boundaries and only after that we can regard new trading scenarios. The breakdown must be sharp and on the large volume, which will be a more accurate signal.
Until that, it’s better to stay out of the market.
The Canadian dollar continued its upward movement, so the uptrend with this instrument is going on. Unfortunately, the price growth was on the small volume, which does not allow us to allocate any new level. Nevertheless, it is worth considering only purchases. Long positions can be opened after a small correction of the price down and the resumption of the sharp growth of the pair on the large volume. A stop loss should be placed just below the start of the abrupt movement. The potential of the deal is more than 100 points.
The Australian dollar fell sharply and broke down the previous support level/lower boundary of the consolidation, which is an excellent signal for opening short positions. Also it is worth noting the formation of the new resistance level of 0.7745 – 0.7757, in which the large volume is concentrated.
All factors indicate that we should give preference to short positions. Sales can be opened after a small correction up, to get a more advantageous entry point. A stop loss should be located a little above the resistance. The potential of the deal is 80 points.
Gold also showed a rapid price drop on Friday and broke down the previous support level. The fall was on the large volume, which is an excellent bearish signal.
Nevertheless, we can open short positions only after the breakdown of the new support level of 1310.40 – 1313.10, which stopped the price drop. The breakout movement must be sharp and supported by the large volume, which will be a more reliable signal for entering the market. A stop loss should be placed just above the breakdown volume bar. The potential of the deal is more than 120 points.
The sentiment: this indicator fully confirms our deals with USD/CAD and AUD/USD, which is an excellent additional signal. With other instruments, we need to wait for strong confirmation signals.