The Euro demonstrated an abrupt rise of the price after the creation of the new support level 1.1517. At the moment the pair is located in the local range between this level and the resistance 1.1665 – 1.1680.
Hence, the best scenario is just to wait for a confident breakout of one of these levels and the exit of the price from the consolidation. The breakout movement should be keen and supported by the large volume, which will be a more precise signal for entering the market.
The Pound showed a keen growth on the very large volume yesterday, which is a good bullish signal. We also need to point out the new volume support level 1.3190 – 1.3204. However, considering the presence of a strong downtrend, we should be extremely careful opening long positions.
We can enter the market and open purchases after the test of the support level and an abrupt, swift rebound of the price up. The move must be supported by the increased volume, which will be a more reliable signal for entering the market. A stop loss should be placed below the level of 1.3190. The potential of the deal is about 100 points.
If the price breaks down the support level, it’s worth giving preference to short positions again.
The Yen significantly corrected down yesterday and is trading in the middle of the local consolidation 109.32 – 110.83 now. The large volume is concentrated in this consolidation; thus, we can regard new positions only after the sure exit of the price from it. The breakout movement must be swift and on the large volume, which will be a more precise signal for entering the market.
The price is located in the small local range near the local maximum. Considering the presence of a strong uptrend, we still should give advantage to long positions with this currency pair.
We can enter the market after the resumption of the price growth, but the movement must be on the large volume, which will be a more secure signal for entering the market. A stop loss should be placed below the beginning of a keen movement. The potential of the deal is more than 120 points.
The Australian dollar tested the support level at 0.7360, but failed to break it down and is located in the small local range near this mark at the moment. Therefore, our previous scenario remains actual: w can open short positions only after a sure breakdown of this level. The breakout movement should be supported by the large volume, which will be a more secure signal for entering the market.
After the formation of the new support level of 1262.50, gold corrected upward yesterday. The movement was quite sharp, but on the small volume, so we cannot consider this growth as a signal for opening purchases. Moreover, it is worth highlighting the presence of a strong downtrend with gold, so we still need to give preference to short positions.
We can enter the market and open sales after the resumption of a sharp decline of the price and a sure breakdown of the new level of support. The movement should be supported by the large volume, which will be a more reliable signal. A stop loss should be placed just above the breakdown volume bar. The potential of the deal is more than 150 points.
The sentiment: the mood of the market totally affirms all our trading scenarios, except purchases with the Pound, which is an excellent additional signal. As with the Euro and the Yen, we should give advantage to short positions and long positions respectively, however, first of all we need to wait for exit of prices from ranges.