The Euro corrected upwards after the test of the support level of 1.1684, but resumed falling during the Asian session today. The price is located near the lower limit of the range, so we can consider a scenario of its breakdown, which will be a great bearish signal.
The breakout movement must be abrupt and supported by the increased volume, which will be a more precise and secure signal for entering the market. A stop loss should be placed above the breakdown bar. A potential of the deal is more than 100 pips.
The Pound also corrected upwards, but then resumed falling today. Nevertheless, the pair is still located near the level of support 1.3312, so our previous scenario remains actual: short positions should be opened only after the breakdown of this mark.
The move should rapid, sure and also supported by the increased volume, which will be a more secure and 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 120 points.
The Yen continued falling, but the movement was stopped by the formation of the new volume support level of 109.02 – 109.22, after that the price corrected upwards. The growth was on small volume, so we still should give a little preference to short positions. We can enter the market after a breakdown of this level. The move should be abrupt and on the increased volume. A stop loss should be located just above the breakdown bar. The potential of the deal is more than 100 points.
Nothing has not changed with this pair as the price is still trading within the local range between the support level of 1.2750 and the resistance level of 1.2985. The large volume is concentrated inside this consolidation, so the best decision is just to wait for a sure exit of the price from it. The breakdown movement should be supported by the large volume, which will insure us against a fake breakdown and will be a more secure signal for entering the market.
Until that, we should omit this pair from our trading plan.
The Australian dollar continued rising and is located just under the resistance level of 0.7600 at the moment. Therefore, our previous scenario is still actual: we can enter the market and open purchases only after a sharp breakout of this mark. The move must be supported by the increased volume. A stop loss should be located just underneath the breakout bar. The potential of the deal is about 80-90 points.
Gold showed rapid growth on the very large volume and broke down the previous resistance level, which is a strong bullish signal. Thus, we can consider the scenario of opening long positions with this instrument.
Nevertheless, we can enter the market after a small downward price correction down to get a more profitable entry point to the market. The fall should be on the small amount. A stop loss should be placed under yesterday’s bullish momentum. The potential of the deal is more than about 200 points.
The sentiment: this indicator affirms with EUR/USD, GBP/USD and partly with gold, which is a good additional signal. The situation is contrary with USD/JPY and AUD/USD , so we must be extremely cautious. We should wait for the exit of prices from local consolidations with other instruments and only after that we can regard new deals.