The Euro continued its fall, so we can state that downtrend with this instrument is going so. Moreover, there is a strong level of resistance, it’s 1.2342 – 1.2357, in which the large volume was concentrated. So given all these factors, we should give advantage to sales.
Short positions can be opened after a smooth and little correction of the price up, in order to get a better entry points. A stop loss should be placed above the level resistance. A potential of the deal is around 100 points.
Our previous scenario with the Pound was executed, as the price showed a rapid decrease and broke down the previous support level. Moreover, it is worth noting that the breakout movement was supported by the large volume, which only strengthens its importance. Given these facts, we should give preference to short positions with GBP/USD.
We can enter the market after a small and smooth correction of the price up on the small volume, in order to obtain a more profitable entry point. A stop loss should be located a little above yesterday’s maximum. The potential of the deal is around 100-110 points.
The Yen corrected to the support level of 106.11 – 106.28, tested it yesterday and is trading a bit above this mark at the moment. Given that the fall was on the small volume, our previous scenario remains actual.
Long positions can be opened after the resumption of a sharp price increase. A stop loss should be located under the support level. The potential of the deal is more than 100 points.
Nothing has changed with the Canadian dollar as the price is still locked in the local consolidation of 1.2818 – 1.3100. Thus, our previous scenario remains relevant: new deals can be opened after the sharp breakout of this range on the large volume. This will be an excellent signal for entering the market.
While the price is located within the consolidation, it is better to stay out of the market.
The Australian dollar adjusted upwards yesterday, but the rise was smooth and on the small volume, so we cannot regard long positions at the moment. That’s why, sales are still in priority with gold.
Short positions can be opened after the resumption of a sharp fall of the price on the large volume, which will be an excellent bearish signal. A stop loss should be placed a little above the beginning of a sharp fall of the price. The potential of the deal is about 80-90 points.
The pair tested the support level of 1323.10 – 1324.40, but could not break it yesterday. Nevertheless, the price did not show any significant reaction and is still trading near this mark.
That’s why, our previous scenario remains actual: sales can be opened after a sure breakdown of the level of support on the large volume. A stop loss should be placed just above the breakdown volume bar. The potential of the deal is about 140 points.
The sentiment: this indicator totally affirms our scenarios with the Euro, the Pound and the Australian dollar, that is a good additional confirming signal. That’s why these three currency pair must be in focus today.