The Euro is located inside the local consolidation just under the strong volume level of resistance 1.1628 – 1.1648. Therefore, our previous scenario remains actual: we still should give advantage to short positions with this instrument.
We can enter the market after a small adjustment of the price upwards, in order to get a more profitable entry point. A stop loss should be located just above the resistance level. The potential of the deal is about 120 points.
The Pound showed a significant and sharp drop yesterday. The price broke down the previous support level/lower limit of the local consolidation, so we should give preference to short positions. Nevertheless, the movement was on the small volume, so we cannot enter the market at the moment. We should wait for the confirmation signal.
We can open sales after a slight correction of the price up and a resumption of a rapid drop on the large volume, which will be a more accurate signal for entering the market. A stop loss should be placed slightly above the beginning of this fall. The potential of the deal is about 130 points.
The Yen is still locked insde the local consolidation between the support level 109.82 and the resistance level 111.94. Hence, we can consider new deals only after a sure and abrupt exit of the price from the range. The breakout move should be supported by the large volume, which will insure us against a fake breakout and will be a more precise signal for entering the market.
The Canadian dollar went on its keen sink and is located near the resistance/upper boundary of the local range at the moment. This gives us a possibility to deliberate a scenario of a breakout of this mark, which will be a good bullish signal and will consent us to open long positions. The breakout move must be abrupt and supported by the large volume, which will be a more reliable signal for entering the market. A stop loss should be placed just below the breakout volume bar. The potential of the deal is about 120 points.
The Australian dollar corrected upwards and tested the new volume resistance level 0.7231, after which the price resumed falling. Hence, we should give advantage to sales. Short positions can be opened after a slight adjustment of the pair up, in order to obtain a more profitable entry point. A stop loss should be placed a little above the resistance level. The potential of the deal is more than 100 points.
The price tested the support level/lower boundary of the local consolidation 1196.40, but failed to break it down. However, the pair did not show a significant reaction or rebound and is located near this mark at the moment, so we can regard a scenario of the breakdown of this level, which will be a strong bearish signal.
The move should be sure and keen + supported by the large volume, which will insure us against a false breakdown and will be a more secure signal for opening sales. A stop loss should be placed just above the breakdown volume bar. The potential of the deal is more than 120 points.
The sentiment: the mood of the market totally affirms all our trading scenarios, which is a great additional signal. As with USD/JPY, it is necessary to wait for the exit of the pair from the local range and only after that we can open new positions.