The Euro demonstrated an abrupt drop yesterday, but the move was on the average volume, so we can’t point out any new level or zone. Besides it, the price is still located within the local range between the support 1.1517 and the resistance 1.1827.
Hence, we can consider new positions only after a keen and confident breakout of one of these levels and the exit of the price from the range. The breakout movement should be supported by the large volume, which will be a more precise and secure signal for entering the market.
Yesterday, the Pound showed a significant fall of the price amid a vote on a change in the interest rate in the UK. It is also worth noting that the decline was supported by the large volume, which only strengthens its importance. At the moment, the pair is trading slightly above the support/lower limit of the local range 1.2970.
Thus, we can consider the trade scenario of a breakdown of this mark, which will be an excellent bearish signal and will allow us to open short positions. The movement should be sharp and supported by 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 is still locked within the local consolidation between 2 strong volume levels. They are the support 110.69 and the resistance 111.94. Therefore, our previous scenario is actual: we can regard new positions only after a sure exit of the price from the range. Besides it, the move should be supported by the large volume, which will insure us against a fake breakout and will be a more reliable signal for entering the market.
The Canadian dollar is also located within the local range between the support 1.2980 and the resistance 1.3080. Hence, the best decision with this instrument is just to wait for a confident exit of the price from the consolidation. The breakout move should be abrupt and supported by the large volume, which will be a more secure and precise signal for opening new positions.
The situation with the Australian dollar is similar: the pair is locked within the local consolidation between the support level 0.7318 and the resistance level 0.7480. The large volume is concentrated in this consolidation, so we can consider new trading scenarios only after a confident and prompt exit of the price from it. The breakdown movement must be supported by the large volume, which will insure us against a false breakdown.
The price showed a sharp sink and broke down the previous support level yesterday, which is a great bearish signal. Unfortunately, the breakdown move was on the small volume, so we can’t open sales now. However, we still need to give advantage to short positions with gold.
We can enter the market after a small and smooth correction of the price up and a resumption of the keen fall, but the drop must be supported by the large volume, which will be a more precise signal for opening short positions. A stop loss must be placed slightly above the beginning of this fall. The potential of the deal is more than 150 points.
The sentiment: the mood of the market totally affirms our positions with GBP/USD and XAU/USD, which is a good additional signal. With all currency pairs, it is worth waiting for a confident exit of prices from local ranges, and only after that can we consider new trading scenarios.