As predicted, the Euro continued its upward movement and broke down the previous resistance level/the upper limit of the local range. This is an excellent bullish signal, but, unfortunately, the movement was on the small volume, so we cannot open purchases at the moment. We need to wait for an additional signal.
So the signal is the continuation of the growth of the pair, but this movement should be supported by the large volume, which will be a more reliable signal for opening long positions. A stop loss should be placed at the beginning of a sharp increase. The target of the deal is the level 1.1835.
The Pound also demonstrated a steady rise yesterday, but the move was on the small volume, so we can’t open purchases now. Also, the level of support 1.3190 – 1.3204 remains important, as until its breakdown, we should give advantage to long positions.
That’s why purchases can be opened only after the resumption of the growth, but on the large volume, which will be a more secure signal for entering the market. A stop loss should be located just under this move. The potential of the deal is around 120-130 points.
The pair is located near the support level/lower limit of the local range 109.32 at the moment, so our previous scenario remains actual: we can enter the market and open sales only after a confident 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 about 110 points.
The price is located in the small local range just underneath the resistance level 1.3346. Considering that there is a strong uptrend with this currency pair, we still should give advantage to long positions. We can enter the market only after a sure breakout of the resistance on the large volume, which will be a more accurate signal for entering the market. A stop loss should be placed under the breakout volume bar. The potential of the deal is more than 120 points.
The Australian dollar is also trading inside the local consolidation just above the support/local minimum of 0.7360. Given that there is a strong downtrend with the Australian dollar, we still need to give preference to sales. Short positions can be opened after the resumption of the decline and a rapid breakdown of the level of support. The movement should be on the large volume, which will be a more reliable signal for entering the market. The potential of the deal is about 80 points.
The price resumed falling and is testing the support level/local minimum of 1262.50 at the moment. We also need to point out the presence of a strong downtrend. Hence, given all these factors, we should regard a scenario of the breakdown of this mark, which will consent us to open sales.
The move should be abrupt and supported by the large volume, which will insure us against a false breakdown and will be a more reliable signal for entering the market. A stop loss must be placed under the breakout volume bar. The potential of the deal is more than 150 points.
The sentiment: the mood of the market fully confirms our trading scenarios, except purchases with the Euro and the Pound, which is a great additional signal. As with these 2 currency pairs, we need to watch for further changes of their sentiment.