The Euro showed a rapid growth yesterday, but is still inside the local consolidation between two strong volume levels: the support 1.1517 and the resistance 1.1827. Moreover, the upward movement was on the small volume, so we cannot regard it as a bullish signal.
Given that the large volume accumulation is concentrated in this range, the best solution with the Euro will be to wait for a sharp exit of the price from the range. The breakout movement should be supported by the large volume, which will be a more reliable signal for entering the market.
The Pound fell down sharply yesterday, besides it, the move was on the small volume. However, the pair is still located inside the local range between the support 1.3066 and the resistance 1.3291.
Hence, our previous trading scenario is still actual: we can enter the market and open new deals only after a sure breakout of one of the levels and the exit of the price from the consolidation. The movement must be sure and on the large volume, which will be a more precise signal.
The Yen grew up significantly yesterday and is located near the resistance level/upper limit of the local consolidation 111.00 at the moment. Therefore, we can regard a scenario of a breakout of this mark, which will be a great bullish signal and will consent us to open long positions. The move should be abrupt and supported by the large volume, which will be a more secure signal for opening purchases. A stop loss must be located below the breakout volume bar. The potential of the deal is more than 110 points.
The Canadian dollar is still located near the support level 1.3138, so our previous trading plan is still actual: we can open short positions only after a keen and confident breakdown of this mark. The breakdown move should be supported by the large volume, which will be a more precise signal for entering the market. A stop loss must be located just above the breakout bar. The potential of the deal is about 100 points.
The Australian dollar is still located in the middle of the local range between the support level 0.7318 and the resistance level 0.7440. Given that the large volume is concentrated in this consolidation, it is necessary to wait for a sharp exit of the price from it and only after that we can regard new positions. The movement should be sharp and on the large volume, which will be a more accurate signal.
The growth of the price was stopped and is trading inside a small local range at the moment. The volume in the market is still small, so we can’t point out new volume levels or zones, which significantly complicates the trade of this instrument.
Therefore, our previous trading scenario is still relevant: we need to wait for the appearance of the large volume in the market, which will indicate to us the further direction of the pair and only after that we can regard new trading scenarios.
The sentiment: the mood of the market affirms our scenario with USD/JPY, which is a great additional signal. The situation is opposite with USD/CAD, so we can enter the market only after a very strong signal. With all other currencies pairs, we should wait for a sure exit of prices from ranges.