After a sharp drop of the price on Thursday, the Euro, as predicted, corrected upwards. The growth was smooth and on the average volume, so our previous scenario remains unchanged: short positions should be in priority. It is also necessary to allocate a resistance level of 1.1665 – 1.1680.
Sales can be opened after the end of the correction and the resumption of the sharp fall of the price. A stop loss should be placed a little above the resistance level. The potential of the deal is about 110-120 points.
The Pound tested the support level of 1.3221, but could not break it and then adjusted upwards. The move was on the small volume, so we cannot consider purchases at the moment, and given the previous sharp drop on the large volume, we still should give preference to short positions. We can enter the market after the resumption of the fall and the rapid breakdown of the support level on the large volume. A stop loss should be placed just above the breakdown volume bar. The potential of the deal is more than 150 points.
The Yen tested the resistance level of 110.83, but could not break it. Nevertheless, the price did not show a significant reaction and is trading near this mark now. Thus, we can consider the scenario of its breakout, which will be an excellent bullish signal. The movement should be sharp and on the large volume, which will insure us against a false breakdown. A stop loss should be placed under the breakout volume bar. The potential of the deal is more than 100 points.
The price showed a significant growth and broke down the previous resistance level last week, which is an excellent bullish signal. Unfortunately, the volume was average and evenly distributed throughout the chart, so we cannot allocate any new volume level.
Thus, we can open purchases after a small correction of the price down. A stop loss should be placed under a strong bullish impulse, which was formed on Friday. The potential of the deal is more than 120 points.
The Australian dollar showed a strong fall and broke down the previous support level last week, which is an excellent bearish signal. Moreover, the decline was supported by the large volume, which only strengthens its importance. Unfortunately, it was evenly distributed throughout the chart, so we cannot allocate a new volume level.
Therefore, short positions can be opened after a slight correction of the price upwards and the resumption of the rapid drop on the increased volume, which will be a more accurate signal for entering the market. A stop loss should be placed slightly above the beginning of this movement. The potential of the deal is about 80 points.
Gold showed a very rapid fall on the large volume and broke down the previous support level on Friday, which is a very strong bearish signal. So, now we should consider only short positions.
Sales can be opened after a small and smooth correction of the price upwards to get a more profitable entry point. A stop loss should be placed just above the breakdown bar. The potential of the deal is more than 150 points.
The sentiment: this indicator fully confirms all of our trading scenarios, which is an excellent additional signal for active trading after the appearance of good entry points.