The Euro showed a significant decline and broke down the previous support level/lower limit of the local consolidation, which is an excellent bearish signal. Moreover, the breakdown movement was on the large volume, which only strengthens its importance. Thus, we should give preference to short positions.
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 above the beginning of the breakdown movement. The potential of the deal is about 120-130 points.
The Pound carried on falling, but the movement was on the small volume, so we can’t point out any new volume level or zone. However, given the presence of the strong downtrend, we should regard exceptionally short positions with this pair.
We can enter after the resumption of the fall, but the movement should be supported by the large volume, which will be a more reliable signal for entering the market. A stop loss should be placed slightly above the beginning of this decline. The potential of the deal is more than 100 points.
The Yen is still located near the support level/lower boundary of the local consolidation 110.69. Hence, our previous scenario remains actual: we can regard a variant of a breakdown of this mark, which will allow us to open short positions.
The move should be keen 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 about 120-130 points.
The Canadian dollar could not continue its drop and corrected upwards. Therefore, the price is still trading inside the local consolidation between the support 1.2980 and the resistance 1.3080. So the best decision is just to wait for a sure breakout of one of these levels and the exit of the price from the consolidation. The breakout movement must be swift and supported by the large volume, which will be a more reliable signal for entering the market.
The Australian dollar fell down strongly yesterday and is again trading inside the local consolidation between 2 strong levels: the support 0.7318 and the resistance 0.7480. Given that the large volume is concentrated within this range, we can open new deals only after a sharp exit of the price from it. Moreover, the breakout movement must be swift and supported by the large volume, which will insure us from a false breakout and will be a stronger signal for entering the market.
Nothing has changed with gold as the price remained trading inside the local range between the support level 1204.80 and the resistance level 1226.60. We also should point out the large volume that is concentrated in this consolidation.
Hence, we can regard new trading scenarios only after a sure and keen exit of the price from the local range. The breakout movement should be rapid and supported by the large volume, which will be a more precise signal for entering the market and will insure us against a fake breakout.
The sentiment: the mood of the market totally affirms our scenarios with the Euro and Pound, which is a great additional signal. As with other instruments, we should wait for the sure and abrupt exit of prices from local consolidations and only after that we can open new deals.