Nothing has changed with the Euro as the price is still trading inside the local range between the support level 1.1517 and the resistance level 1.1827. We also need to point out that the large volume is concentrated within this consolidation. Hence, our previous scenario is still actual: new deals can be opened only after a sure and sharp exit of the price from the range. The move should be abrupt and supported by the large volume, which will be a more precise signal for entering the market.
The Pound went on falling, but the general picture on the market did not change: the pair is still locked within the local consolidation between the support 1.3066 and the resistance 1.3345. Therefore, we can regard new trading scenarios only after a keen breakout of one of these levels and the exit of the price from the range. This move must be supported by the large volume, which will insure us against a fake breakout.
The Yen continued its growth yesterday, moreover, the upward movement was swift and supported by the large volume, which is a strong bullish signal and allows us to consider a scenario of opening long positions with this currency pair.
We can enter the market after a small and smooth correction of the price down and the resumption of a sharp surge on the large volume. A stop loss must be located under the beginning of this movement. The potential of the deal is more than 100 points.
The Canadian dollar adjusted downwards yesterday, but the move was on the small volume, so we can’t consider long positions. Moreover, the price is still trading above the support level 1.3112 – 1.3143, so we still need to give preference to purchases. We can enter the market after the end of the correction and the resumption of the sharp rise. A stop loss should be located below the support level. The potential of the deal is more than 150 points.
The Australian dollar continues trading in the middle of the local range between the support level 0.7318 and the resistance level 0.7480. Therefore, the best decision with this pair is just wait for a sure and abrupt exit of the price from the range. The breakout movement must be supported by the large volume, which will be a more precise and strong signal for entering the market.
The price corrected upwards yesterday, but we can’t deliberate purchases as the growth was smooth and on the small volume. Besides it, considering the previous sharp fall on the large volume and the fact that the price is trading near the support level 1240.00, we still should give advantage to short positions.
We can enter the market after the resumption of the dip and a sure breakdown of this mark. The move must be supported by the large volume, which will insure us against a fake breakdown. 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 our positions with USD/JPY, USD/CAD and XAU/USD, which is a great additional confirming signal. As with all other instruments, we first need to wait for the exit of prices from local consolidations, and only after that we can consider new positions.