We should allocate a new volume support level 1.2191 with the Euro, after the formation of which, the price sharply adjusted up yesterday. However, the pair was unable to continue its growth and resumed its fall. Now the price is testing this mark, and given the previous rapid drop on the large volume, we should consider the breakdown scenario of the level of 1.2191, which will be an excellent bearish signal and will allow us to open sales with the Euro.
The breakout movement must be swift and sharp, which will be a more accurate and reliable signal for entering the market. A stop loss should be placed just above the breakdown bar. The potential of the deal is more than 100 points.
The Pound also adjusted upwards yesterday, but the growth of the price was smooth and on the small volume, so we can’t regard long positions now. Moreover, given the recent strong fall of the price on the large volume, we still should give advantage to short positions.
We can enter the market after the resumption of the drop of the price and the breakdown of the local minimum. The movement must be sharp and sure, which will be a more accurate signal for opening new positioins. A stop loss should be located just above the breakout bar. The potential of the deal is more than 120 points.
We must point out the new volume resistance level of 109.16 with USD/JPY, in which the large volume is concentrated. After its creation, the price sharply corrected down. Nevertheless, the pair has completely absorbed the drop and is testing this level now, so we can regard a scenario of its breakdown, which will be a great bullish signal. The breakdown movement must be sharp and on the increased volume. A stop loss must be located under the breakout volume bar. The potential of the deal is about 100-110 points.
The Canadian dollar is located in the small local range just above the support level of 1.2819 at the moment, so our previous scenario is still actual: long positions must be in priority. We can enter the market after a resumption of the growth of the pair from this mark. A stop loss should be placed underneath the recent sharp growth of the pair. The potential of the deal is more than 100 points.
The Australian dollar tested the resistance level of 0.7616 – 0.7624 and resumed falling. Moreover, given the presence of the local downtrend, it is worth giving preference to sales with this instrument. Short positions can be opened after a small correction of the price upwards to get a more profitable entry point. A stop loss should be located a little above the resistance. The potential of the deal is more than 100 points.
XAU/USD tested the support level of 1323.10 – 1324.40, but could not break it and then corrected overhead. Nevertheless, the price is testing this mark again at the moment, so our previous scenario is still actual: short positions after a sharp breakdown of the level of support.
The move should be supported by the large volume, which will be a more secure and precise signal for entering the market. A stop loss should be located just above the breakdown volume bar. The potential of the deal is about 130-140 points.
The sentiment: this indicator still confirms all our deals, which is a great additional signal for us. The only exception is gold, as the sentiment shows that we must consider purchases (trading against the “crowd”). Given technical factors we should give preference to short positions.