The Euro continues trading within the local consolidation between two strong volume levels: the support 1.1648 and the resistance 1.1835. Yes, the price showed a significant decline yesterday, but the move was on the small volume, so we cannot consider it as a signal to enter the market.
Moreover, given that the large volume is concentrated in this range, new positions with the Euro can only be opened after a confident and prompt exit of the price from it. The movement should be on the large scale, which will insure us against a false breakdown and will be a more accurate signal for entering the market.
Nothing has change with the Pound. The price is located in the middle of the local range between two strong volume levels. They are the support 1.3221 and the resistance 1.3619. Moreover, we should note the presence of the large volume accumulation inside this consolidation.
Considering all these factors, the best decision with this instrument is just to wait for a confident breakout of one of these levels and the exit of the price from the consolidation. The breakout move must be supported by the large volume, which will be a more precise and secure signal for opening new deals.
The Yen grew up and broke out the previous resistance level, which is a good bullish signal. Unfortunately, we can’t open long positions at the moment as the breakout was smooth and on the small volume, so we don’t have a good placed for a stop loss.
That’s why it is necessary to wait for the continuation of the rise of the pair, but on the large volume (preferably after a smooth downward correction). A stop loss should be located under the beginning this move. The potential of the deal is more than 100 points.
The Canadian dollar continued its slight growth and is testing the resistance level/upper boundary of the local range 1.3030 at the moment. Hence, our previous trading plan is actual: we can consider a scenario of the breakout of this mark, which will allow us to open long positions. The move should be on the large volume. A stop loss must be placed below the breakout volume bar. The potential of the deal is about 110-120 points.
The price is still locked inside the local range 0.7492 – 0.7675, so we can regard new trading scenarios with this currency pair only after a confident and sharp breakout of one of the boundaries of the consolidation. The breakout move must be supported by the large volume, which will be a more accurate signal for opening new deals.
While the price is trading within the consolidation, it is better to stay out of the market.
Gold demonstrated a significant fall yesterday, nevertheless, the price is still trading within the local consolidation between the two strong volume levels: the support 1290.40 and the resistance 1306.20.
Given that the large volume accumulation is concentrated in this consolidation, new positions can be opened only after the sharp exit of the price from it. The breakout movement should be supported by the large volume, which will be a more secure and accurate signal for entering the market.
The sentiment: the mood of the market confirms our trading scenarios of opening long positions with USD/JPY and USD/CAD, which is a good additional signal. The situation with all other instruments remained the same: we can consider new positions only after a confident exit of prices from local consolidations.