After the test of the support level 1.1780, the Euro remained trading near this mark, which gives us the opportunity to consider the scenario of its breakdown, which will be an excellent bearish signal and will allow us to open short positions with this instrument.
The breakdown level must be strong, sharp and confident, and movement should be supported by the increased volume. This will be a more accurate and reliable signal for opening new positions with the Euro. A stop loss should be placed just above the breakout bar. The potential of the deal is more than 100 points.
Nothing has not changed with the Pound as the price continues trading within the local range 1.3470 – 1.3619. As we can see from the chart below, the large volume accumulation is concentrated in this consolidation, so the exit of the pair from it will be a great signal for entering the market. The breakout movement must be abrupt and supported by the large volume, which will insure us against a fake breakout and will be a more precise and secure signal for opening new positions.
Until that, it’s better to stay out of the market.
As predicted, the Yen continued rising and broke out the previous resistance level. We should note that the movement was supported by the large volume, which is a great bullish signal. Thus, it is worth giving preference to long positions with the Yen. We can enter the market after a small price correction down to get a more profitable entry point. A stop loss must be placed below the yesterday’s breakout volume bar. The potential of the deal is more than 100 points.
The pair tested the support level of 1.2750, but failed to break it out and grew up significantly. Now it is trading within the local range again. The upper limit of the consolidation is the resistance 1.2985. Thus, the best decision with this currency pair is just to wait for a confident exit of the price from the consolidation. The breakout movement should be supported by the large volume, which will be a more precise signal for entering the market.
The Australian dollar is also trading in the local range 0.7424 – 0.7581, where the large volume is concentrated. Therefore, our previous scenario remains actual: we can open new positions only after a keen and confident breakdown of one of the boundaries of the consolidation. The movement should be supported by the large volume, which will be a more secure signal.
Gold fell down yesterday, but the price drop was smooth and on the small volume, which, nevertheless, is a good bearish signal. At the moment, the pair is trading near a new support/local minimum level of 1287.30, so we can consider short positions only after its breakdown.
The movement must be confident and rapid, and also supported by the increased volume, which will be a more accurate 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 sentiment: the mood of the market totally affirms all our trading scenarios, which is a great additional signal. With all other pairs, it is necessary to wait for the prices to come out of the consolidation and only after that we can regard new trading scenarios.