Nothing has changed with the Euro as the price is still locked inside the local consolidation between the support level 1.1517 and the resistance level 1.1827. Therefore, our previous scenario remains actual: we can consider new positions only after a confident exit of the pair from the range.
The breakdown moveshould be sharp and supported by the large volume, which will insure us against a fake breakout and will be a more precise signal for entering the market. While the price is trading in the range, it is better to stay out of the market.
As predicted, the Pound continued its downward movement yesterday. Nevertheless, the decline was on the small volume, so we cannot allocate any new volume level, which means that we do not have a good place for a stop loss. Despite this, we still should give preference to short positions, as there is a strong downward trend.
Sales can be opened after the resumption of a sharp fall, but this movement should be supported by the large volume, which will be a more accurate signal for entering the market. A stop loss should be placed a little above the beginning of this decline. The potential of the deal is more than 120 points.
The Yen fell down strongly yesterday and the pair is testing the support level/lower limit of the local consolidation 110.69 at the moment. Hence, we can regard a scenario of a breakdown of this mark, which will consent us to open short positions with this instrument. The breakdown move should be sure + supported by the large volume, which will insure against a fake breakdown. A stop loss should be located slightly above the volume breakdown bar. The potential of the deal is about 120-130 points.
After the test of the resistance level, the price fell down sharply and on the very large volume. The pair is trading near the support/lower limit of the local consoidation 1.2980 at the moment. This gives us an opportunity to deliberate a scenario of a breakdown of this level, which will be an excellent bearish signal.
The breakdown move must be keen and supported by the large volume. A stop loss should be placed just above the breakdown volume bar. The potential of the deal is more than 120 points.
The Australian dollar demonstrated an abrupt rise yesterday and is currently trading near the resistance/upper limit of the local range 0.7480. The upward move was supported by the large volume, so we can and should regard a scenario of a breakout of this mark, which will consdent us to open purchases.
The breakout movement should be sure and abrupt + supported by the large volume. A stop loss should be placed below the breakout volume bar. The potential of the deal is more than 100 points.
The situation with gold remained the same as it is still located within the local consolidation between the support level 1204.80 and the resistance level 1226.60. Besides it, we should point out that the large volume is concentrated in this range.
Therefore, the best solution with gold is just to wait for a sure and keen exit of the price from the local consolidation. Moreover, the breakout move must be supported by the large volume, which will insure us against a fake breakout and will be a more precise and secure signal for entering the market.
The sentiment: the mood of the market totally affirms our trading scenario with the Pound, which is an excellent additional signal. As with the Yen, Canadian and Australian dollars, it is necessary to wait for the appearance of strong additional signals and only after that it is possible to enter the market.