As predicted, the Euro continued its decline yesterday. The downward movement was rapid and supported by the very large volume, which is a strong bearish signal. In addition, we need to allocate the new volume level of 1.2183 – 1.2196.
Given all of the above technical factors, we should give preference to sales with the Euro. Short positions can be opened after a slight correction of the price up. A stop loss should be placed a little above the resistance level. The potential of the deal is more than 100 points.
The Pound also demonstrated a sharp fall, but could not breakdown the support level/local minimum of 1.3908. Nevertheless, given the rapid decline on the large volume and a local downtrend, it is worth giving preference to sales.
Short positions can be opened after a confident and sharp breakdown of the level of support. A stop loss should be placed just above the breakout bar. The potential of the deal is more than 120 points.
The Yen is trading in the small range just below the local minimum now. Given the presence of the strong local uptrend, we still should give preference to long positions. Purchases can be opened after the resumption of a sharp price growth and a breakout of the local maximum. A stop loss should be placed just below the range. The potential of the deal is 100 points.
The Canadian dollar is also located in the small range just above the support level of 1.2819. Therefore, our previous scenario remains relevant: long positions should be in priority. Purchases should be opened after a small price correction down. A stop loss must be located a little below the support level. The potential of the deal is about 120 points.
The price continued falling, moreover, the move was supported by the large volume and the new volume resistance level of 0.7589 was formed. Considering all the above factors, it is worth considering exceptionally short positions. Sales can be opened after a small correction of the price up, to get a more advantageous entry point. A stop loss should be placed a little above the resistance. Potential of the deal is more than 100 points.
As predicted, gold continued its fall and broke down the previous support level. Moreover, the breakout movement was sharp and supported by the large volume, which only strengthens its importance. Therefore, we should only consider sales with gold at the moment.
Short positions can be opened after a small correction of the price upwards to get a more advantageous entry point. A stop loss should be placed just above the bearish momentum. The potential of the deal is 120-130 points.
The sentiment: the mood of the market remained the same as it still affirms all our trading scenario today. It is a great additional signal for active trading. The only exception is gold, but considering all technical factors, we should give preference to sales.