The Euro showed a sharp price growth on the huge volume and broke down the previous resistance level, which is an excellent bullish signal. On the other hand, the new volume resistance level of 1.2365 – 1.2375 was created, which stopped the upward movement. Nevertheless, considering that the pair did not show a significant reaction and is trading near this mark, we can consider a scenario of its breakdown, which will allow us to open long positions.
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 must be placed under the breakout volume bar. The potential of the deal is about 90-100 points.
The Pound also grew up, but the price rise was smooth and on the average volume, so we can’t point out any new volume level or zone. In addition, the pair is trading just below the strong resistance level of 1.4240 now.
Therefore, we can consider long positions only after a sure and sharp breakout of this mark. The breakout move should be supported by the large volume, which will be a more secure and stronger signal for entering the market. A stop loss should be placed below the breakout volume bar. The potential of the deal is more than 100 pips.
Nothing has changed with USD/JPY as the price is trading in the small local consolidation just below the resistance level of 107.48. Hence, we can point out 2 possible trading scenarios with this instrument.
The first one is an abrupt breakout of the resistance level on the large volume, which will be an excellent bullish signal and will consent us to open purchases. The second is a test of the resistance level and a strong rebound of the price down on the large volume. It will be a good bearish signal, so we will be able to open sales.
The Canadian dollar continued its fall, moreover, the decrease was sharp and supported by the large volume, which is a strong bearish signal. That’s why, short positions should be in the priority with this instrument now.
We can enter the market after a small and smooth upward correction of the price, in order to obtain a better entry point. A stop loss should be located above the beginning of a sharp sink of the price. The potential of the deal is more than 100 pips.
The price showed a significant rise and is located just below the resistance/upper limit of the consolidation 0.7775 at the moment. Thus, we can consider the scenario of a breakout of this mark, which will be a good sign for opening long positions with the Australian dollar. The move should be sharp and supported by the large volume. A stop loss must be placed below the breakout volume bar. The potential of the deal is about 100 points.
The pair continued its surge, but the upward movement was smooth and on the small volume, so we can’t point out any new level or zone. Beside it, gold is currently located in the middle of the local consolidation between two strong volume levels: the support of 1323.10 – 1324.40 and the resistance of 1355.70.
Thus, the best decision is just to wait for a confident exit of the price from the range. The movement must be sharp and upheld by the large volume, which will be a more reliable signal for entering the market.
Note: given the overall situation on the market, we should give slight advantage to the scenario of a breakout of the resistance level.
The sentiment: this indicator totally affirms all our trading scenarios today, which is a great additional confirming signal for us. Short positions should be in priority with the Yen, while long positions – with gold (according to the mood of the market).