The Euro did not show any significant movements yesterday and still remained trading inside the local consolidation between the two strong volume levels. They are the support 1.1648 and the resistance 1.1744.
From the volume chart above it can be seen that the large volume is concentrated in this range, so the best solution with the Euro will be to wait for a confident exit of the pair from it. The movement should be swift and supported by the large volume, which will be a more reliable signal for opening new deals. While the price is within the consolidation, it is better to stay out of the market.
The Pound resumed falling yesterday, but the drop of the pair was on the average volume, so we can’t point out any new volume level or zone. Besides it, the price is still located inside the local range of 1.3221 – 1.3417.
Therefore, our previous scenario remains actual: we can open new deals here only after the confident exit of the pair from this consolidation. The movement should be keen and supported by the large volume, which will be a more precise signal for entering the market.
The Yen went on rising and is trading near the upper limit of the consolidation/resistance level of 110.33 at the moment. It gives us a possibility to consider a scenario of its breakout, which will be an excellent bullish signal and will consent us to open long positions with this currency pair. The move must be supported by the large volume, which will insure us against a fake breakout. A stop loss must be located below the breakout volume bar. The potential of the deal is more than 100 points.
While the pair is within the consolidation, it is better to stay out of the market.
The pair corrected downwards yesterday, but the general situation has not changed as it continues trading within the local range between the support 1.2750 and the resistance 1.3030. The large volume is concentrated inside this consolidation, so the best decision is just to wait for a sharp breakout of one of these marks. It will be a great signal for entering the market. Also, the breakout move must be on the large volume, which will insure us against a false breakout.
The Australian dollar showed a sharp and sure growth on the increased volume and broke out the previous resistance level, which is a nice bullish signal. So that it is necessary to give preference to purchases at the moment.
Nevertheless, long positions can be opened after a confident breakout of the new volume resistance level of 0.7660. The movement must be supported by the large volume. A stop loss should be located below the breakout volume bar. The potential of the deal is about 80-90 points.
The price went on the downward movement and is currently located inside the local range between the support level of 1282.80 and the resistance level of 1306.20. The large volume is concentrated within the consolidation, so the best trading scenario with gold is just to wait for a breakout of one of these levels.
The breakout movement must be sharp and sure, and also supported by the large volume, which will be a more secure and precise signal for entering the market. While the pair is located in the consolidation, it is better to stay out of the market.
The sentiment: the mood of the market fully affirms our trading scenarios with USD/JPY and AUD/USD, that is a good additional signal. It is necessary to wait for the sure and abrupt exit of prices from consolidation with all other pairs and only then we will be able to use the sentiment as a confirmation signal.