Yesterday, the Euro fell sharply and is trading near the local minimum/support level 1.1517 at the moment. It is worth noting that the downward movement was supported by the increased volume, which is an excellent bearish signal. Thus, we can consider the scenario of the continuation of the fall and the breakdown of the level of support, which will allow us to open sales with this instrument.
The movement should be swift and sharp, and also supported by the large volume that will insure us from a false breakdown and will be a more accurate signal for entering the market. A stop loss should be placed just above the breakdown volume bar. The potential of the deal is more than 120 points.
The Pound also demonstrated an abrupt fall on the increased volume yesterday, which is an excellent bearish signal and consents us to open short positions with this currency pair.
Sales can be opened after a small and smooth upward correction of the price to obtain a more profitable entry point. A stop loss should be placed just above the beginning of a sharp downward movement. The potential of the deal is more than 150 points.
The price is still located within the local range between two strong volume levels. They are the support 109.32 and the resistance 110.83. The large volume is concentrated in this consolidation, so the best decision is just to wait for the exit of the pair from it. The breakout movement must be supported by the large volume, which will be a more accurate signal for entering the market.
The pair broke out the previous resistance level, but failed to continue growing and adjusted downwards after the formation of the new resistance level 1.3367. The price is in the local range again. The lower boundary of this consolidation is the support level 1.3270.
Therefore, we can enter the market only after a keen and sure exit of the price from the range on the large volume, which will be a more reliable signal for entering the market.
The Australian dollar broke down the previous support level, but failed to continue falling and corrected upwards after the creation of the new volume level of 0.7331. However, considering that the rise was smooth and the pair is trading near this mark, we should regard a scenario of the breakdown of this level.
The breakout move should be sure and swift + supported by the large volume, which will be a more secure signal for entering the market. A stop loss must be placed just overhead the breakdown volume bar. The potential of the deal is about 80 points.
The price continued its sink, but, as before, the downward movement was supported by the small volume, so we can’t point out any new volume level or zone. However, considering the presence of the strong downtrend, we should give advantage to short positions.
We can open sales after the continuation of the drop of the pair, but the movement must be supported by the large volume, which will be a more precise signal for opening sales. A stop loss must be located just above this sharp move. The potential of the deal is more than 150 points.
The sentiment: this indicator fully confirms our scenarios with the Euro, Pound, Australian dollar and gold. With the Canadian dollar, we should give advantage to long positions, which is confirmed by the presence of the uptrend, but it is necessary to wait for the breakout of the resistance.