The Euro grew up yesterday, but is still inside the local consolidation between the support level 1.1517 and the resistance level 1.1827. Thus, our previous trading scenario remains relevant: new positions can be opened only after the price leaves the range. The breakdown movement must be swift, confident, and also supported by the large volume, which will insure us against a false breakout and will be a more accurate signal for opening new deals. While the price is within the consolidation, it is better to stay out of the market.
Our previous scenario was fully executed, as the price showed a sharp drop on the large volume and broke down the previous support level yesterday. Nevertheless, the pair’s decline was stopped by the new volume level 1.3018, after the formation of which, the price gradually corrected upward.
Thus, short positions can only be opened after a confident and sharp breakdown of the new level of support on the large volume, which 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 Yen adjusted down yesterday. Moreover, the movement was on the increased volume. Nevertheless, given the previous sharp increase of the price on the large volume + the presence of a strong uptrend, we still should give preference to purchases.
Long positions can be opened after a stoppage of the correction and a resumption of the sharp growth of the price on the large volume. A stop loss should be placed at the beginning of this movement. The potential of the deal is more than 100 points.
USD/CAD also corrected down yesterday. The movement was sharp, but on the small volume, and given the strong support level of 1.3112 – 1.3143, we still should give priority to long positions with this pair.
We can enter the market after the end of the fall and a resumption of the sharp growth on the large volume. A stop loss must be placed below the support level. The potential of the deal is more than 150 points.
AUD/USD rose yesterday, but the overall picture has not changed: the price is still trading within the local range between the support level 0.7318 and the resistance level 0.7480. Thus, the best decision with the Australian dollar will be to wait for a confident and sharp exit of the pair from the consolidation. The breakout movement must be supported by the large volume, which will insure us against a false breakdown and will be a more accurate signal for entering the market.
Gold continued its decline, but the movement was smooth and on the small volume. Nevertheless, given the recent sharp decline on the large volume and the breakdown of the support, we must consider short positions with this instrument.
Sales can be opened after a small and smooth correction of the price upwards to get a more profitable entry point to the market. A stop loss should be placed a little higher than the recent rapid decline. The potential of the deal is more than 150 points.
The sentiment: this indicator confirms all of our deals today, which is a good additional signal. As with EUR/USD and AUD/USD, we need to wait for the exit of prices from ranges and only after that we can consider new positions with these currency pairs.