Due to low volatility and liquidity, the Euro remained trading inside the local range between two strong volume levels: the support 1.1517 and the resistance 1.1827. Given that the large volume is concentrated in this consolidation, the best decision is just to wait for a sure and swift exit of the pair from it. The breakout move should be supported by the large volume, which will be a more precise and secure signal for entering the market.
The Pound continued its smooth growth yesterday, but the move was on the small volume, so we cannot consider the scenario of opening long positions. Moreover, the pair is still inside the local consolidation between the support level 1.3066 and the resistance level 1.3291.
Thus, the best solution with this currency pair will be to wait for a confident and sharp breakdown of the consolidation boundaries. The move should be supported by the large volume that will insure us from a false breakout and will be a more reliable signal for entering the market.
The pair is also in the middle of the local consolidation between 2 strong volume levels. They are the support 109.32 and the resistance 111.00. Therefore, our previous scenario is still actual: we should wait for the exit of the price from the range and only after that we can regard new positions with this instrument. The move must be abrupt and supported by the large volume, which will insure us against a fake breakout. Until that, it is better to stay out of the market.
The price is trading at the support level 1.3138, so our previous scenario is still actual: we can open short positions after the sure breakdown of this mark. The movement should be sharp and on the large volume, which will be a more accurate signal for entering the market. A stop loss must be placed just above the breakout volume bar. The potential of the deal is about 100 points.
The Australian dollar adjusted down after the sharp rise, but the general picture remained the same – the price is still located inside the local consolidation 0.7318 – 0.7440. The large volume is concentrated in this range, so the best decision is just to wait for a confident exit of the price from it. The breakout move should be sure and on the large volume, which will be a more precise and secure signal for entering the market.
Nothing has changed with gold: the price continued correcting upwards on the small volume + there is a strong downtrend, that’s why we can’t regard long positions now. On the other hand, we need to point out the global support level 1240.00, so we also can’t open short positions at the moment.
Therefore, it is better to stay out of the market and wait for the appearance of the large volume, which will indicate to us the further direction of the market.
The sentiment: the mood of the market that we should give preference to long positions with USD/JPY and USD/CAD and short positions with other currency pairs. However, we need to wait for exit of prices from consolidation and only after that we will be able to regard new positions.