The Euro continued its downward movement and broke down the previous support level. Moreover, the breakout movement was supported by the large volume, which is an excellent bearish signal. Nevertheless, now we can not open sales, as the price drop was stopped by the formation of the new volume support level 1.1780.
Thus, short positions can be opened only after the resumption of a sharp drop in prices and a sure breakdown of the level of support on the increased volume, which will be a more accurate 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 tested the support level/lower limit of the consolidation 1.3470, but failed to break it down and after that showed an upward correction. The price is located in the local consolidation between this mark and the level of 1.3619. The large volume accumulation is concentrated inside this range, so the best decision with the Pound is just to wait for a confident exit of the price out of it. The breakout movement must be abrupt and supported by the large volume, which will be a more accurate signal for entering the market.
The Yen is currently trading in the small local consolidation just below the maximum of 110.39. Nevertheless, given the previous strong growth of the price on the large volume, we still need to give advantage to long positions. We can enter the market and open purchases after a confident breakout of the local maximum on the increased volume. A stop loss should be placed just below the breakdown bar. The potential of the deal is more than 100 points.
The Canadian dollar resumed falling and is testing the support level/lower limit of the local consolidation 1.2750 at the moment. The downward move was supported by the increased volume, therefore, we can regard a scenario of the breakdown of this level, which would be an excellent signal for opening short positions. A stop loss should be placed just above the breakout bar. The target of the deal is a local minimum of 1.2532.
The pair is still locked in the local consolidation 0.7424 – 0.7581, in which the large volume is concentrated. Hence, our previous scenario remains actual: new deals can be opened only after a sure and abrupt breakout of one of the boundaries of the range. The movement should be supported by the large volume, which will be a more precise signal for entering the market.
While the price is trading within the consolidation, it is better to stay out of the market.
The price did not show any significant moves yesterday and it is trading in the small consolidation near the local minimum now. Also it is necessary to point out the volume resistance level 1301.60 – 1303.50. Therefore, the situation with this instrument has not changed and our previous scenario remained actual.
We can open short positions after a small and smooth upward correction of the price, in order to obtain a more profitable entry point to the market. A stop loss should be placed just above the resistance level. The potential of the deal is more than 150 points.
We can also open sales after a rapid breakdown of the local minimum.
The sentiment: this indicator totally affirms our scenarios with the Euro, Yen and gold, which is an excellent additional signal. The situation with the Canadian dollar is a bit confusing, as technical factors point to sales, while the sentiment is in balance. Therefore, we should be extremely careful when trading this pair. With the Pound and the Australian dollar, we need to give preference to sales, but first we should wait for prices to come out of consolidations.