The Euro rose sharply on Friday, but the movement was on the small volume, so we cannot single out any new level. Moreover, the price is still inside the local range between 2 strong volume levels: the support 1.1517 and the resistance 1.1827.
Thus, our previous scenario remains relevant: we can open new deals only after a confident and sharp exit of the price from the consolidation. The breakout movement should be supported by the large volume, which will be a more accurate signal for entering the market.
The Pound also showed a significant growth, but it was on the average volume that was evenly distributed throughout the movement, so we cannot allocate a new level or zone. Moreover, the price is trading in the local range between the support 1.3066 and the resistance 1.3345.
Given these factors, the best solution with the Pound will be to wait for a confident and sharp exit of the price from the range. The movement should be supported by the large volume that will insure us against a false breakout and will be a more accurate signal for entering the market.
After a sharp increase, the price corrected down on Friday. It should be noted that the decline was smooth and on the small volume. In addition, it is necessary to allocate a support level of 111.51 – 111.61, in which the large volume is concentrated.
Thus, it is still worthwhile to give preference to purchases at the moment. Long positions can be opened after the stoppage of the correction and the resumption of a sharp growth on the large volume. A stop loss should be placed under the support level. The potential of the deal is more than 120 points.
The Canadian dollar also adjusted down and is now trading near the support level 1.3112 – 1.3143. The large volume is concentrated within this level, so we should give preference to purchases before it will be broken down.
Long positions can be opened after the test of this mark and a sharp rebound of the price upwards. A stop loss must be placed below the support level. The potential of the deal is more than 150 points.
The situation with the Australian dollar has not changed, the price is still trading in the middle of the local consolidation between two strong levels. They are the support 0.7318 and the resistance 0.7480. Thus, we can consider new trading scenarios only after the breakout of one of these levels and the exit of the price from the range. The breakout movement must be swift and supported by the large volume, which will be a more reliable signal for entering the market.
Gold tested the global support level 1240.00, but could not break it down. Given that the price did not show a significant reaction to this movement and remained trading near this mark, we can consider a scenario of a breakdown of the level of support. This will be an excellent bearish signal.
The breakout movement must be sharp and supported by the large volume, which will insure us against a false breakdown and will be a more accurate and strong 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 150 points.
The sentiment: this indicator completely confirms our scenarios with the Yen, the Canadian dollar and gold, which is an excellent additional signal. As with other currency pairs, new trading scenarios can be considered only after the price comes out of ranges.