Our previous scenario was totally executed as the Euro dropped and broke down the support level. This is a great signal for the continuation of the local downtrend. It is necessary to allocate a new level of support 1.1842, that contains the increased volume. Anyway, given the absence of a sharp reaction, we should consider the scenario of its breakdown, which will allow us to open short positions.
The breakout movement must be sharp and supported by the increased/large volume, which will be a more reliable signal. A stop loss should be placed just above the breakout bar. The potential of the deal is 120 points.
The Pound resumed its fall, and the price tested the level of support/local minimum of 1.3497 yesterday. The pair could not break down this mark and at the moment is trading slightly above it. Despite this, we still need to give preference to short positions, since the pair did not show a significant reaction on the support test + there is a strong downtrend with the Pound.
Sales can be opened after a confident and sharp breakdown of the level of support. Movement should be supported by a large volume, which will be a more reliable signal for entering the market. A stop loss should be placed just above the breakout bar. The potential of the deal is more than 150 points.
The Yen tested the support of 108.65 – 108.81, after which it showed an abrupt rise. Despite this, the price is still trading in the local range between this mark and the resistance of 109.97. The large volume is concentrated in the consolidation, so the best decision is just to wait for a confident exit of the price from the range. The breakout movement must be sharp and supported by the large volume, which will be a more reliable signal for entering the market.
The Canadian dollar continued its growth and broke down the previous resistance level, which is an excellent bullish signal. Nevertheless, the further movement of the pair was stopped by the creation of the new volume resistance of 1.2985. Hence, long positions can be opened only after a confident and keen breakdown of this mark. A stop loss must be placed under the breakout bar. The potential of the deal is more than 130 points.
The Australian broke down the previous support level and continued its fall. The movement was sharp and supported by the large volume. Also we need to point out the new volume resistance level of 0.7472. So, all factors show us that we must give advantage to sales. We can enter the market after a small correction of the price upwards to obtain a more profitable entry point. A stop loss should be placed a little above the resistance. The potential of the deal is 80-90 points.
The situation with gold has not changed: the price is still trading in the local consolidation between two strong volume levels. They are the support of 1302.20 and the resistance of 1326.00. The large volume is concentrated in this range, so the best scenario is to wait for the price to come out of it.
The breakout movement must be swift and confident, and also supported by the large volume, which will insure us against a false breakdown and will be a more reliable signal for entering the market.
The sentiment: the mood of the market fully affirms all our trading scenarios, which is a great additional signal. The situation with the Yen and gold has not changed, they are located in ranges, so should wait for the resumption of local trends with these pairs.