The Euro demonstrated an abrupt growth on the huge large volume after the test of the support level 1.1525 yesterday. However, considering the presence of both the strong local downtrend and the resistance level of 1.1822, we can’t open long positions at the moment with this currency pair.
Therefore, we should wait for a confident and keen exit of the price from this range, which will be an excellent signal for entering the market. The breakout movement should be supported by the large volume, which will be a more secure signal for entering the market.
While the price is located in the range, it is better to stay out of the market.
After the test of the support level of 1.3321, the Pound demonstrated a smooth price increase. The upward movement was on the small volume, so we can not consider long positions at the moment. Moreover, given the presence of a strong downtrend and the fact that the pair is trading near the support, we should give preference to the scenario of the breakdown of this level, which will be an excellent bearish signal.
The breakdown of the support level should be sharp and rapid, and also supported by the large volume, which will be a more reliable signal for entering the market. A stop loss should be placed just above the breakdown volume bar. The potential of the deal is more than 150 points.
The Yen resumed its drop after a small and smooth correction of the price up yesterday. The price is trading near the support level of 108.20 at the moment, so we can regard a scenario of its breakdown, which will be an excellent signal for opening short positions. The move should be sharp and on the large volume. A stop loss should be placed just above the breakdown volume bar. The potential of the deal is about 110-120 points.
The pair grew up strongly on the very large volume yesterday, which is a good signal for opening short positions. We also need to point out the new volume resistance level of 1.2910 – 1.2932. We can enter the market and open sales after a small and smooth correction of the price up, in order to obtain a more profitable entry point. A stop loss should be located a little overhead the resistance level. The target of the deal is the level 1.2750.
The Australian dollar showed an abrupt rise on the increased volume, but the pair is still trading in the local range 0.7492 – 0.7600. The large volume is concentrated in this consolidation, so the best decision is just to wait for a sure and keen breakout of the boundaries of the consolidation, which will be an excellent signal for entering the market. The movement must be supported by the large volume, which will insure us against a false breakout.
Until that, we should skip this pair from our trading plan.
The price went on rising and is located near the resistance level of 1306.30 at the moment. Hence, we can regard the scenario of the breakout of this mark, which will be a great signal for opening long positions.
The breakout movement must be supported by the large volume, which will be a more precise and secure signal for entering the market. A stop loss should be located just below the breakout volume bar. The potential of the deal is about 200 points.
The sentiment: this indicator totally affirms our trading scenarios with the Pound, Yen and gold, which is a great additional signal. The situation with the Canadian dollar is controversial, however, recent sharp drop points that we must give a slight preference for short positions. We also should give advantage to sales with the Euro and the Australian dollar (according to the mood of the market), but firstly we need to wait for exits of prices from ranges.