The Euro plummeted yesterday and is now trading near the support/lower limit of the local range 1.1267. The downward movement was sharp and on the increased volume, which is an excellent bearish signal. Thus, we can consider a scenario of the breakdown of this mark, which will allow to open sales.
The breakout movement must be confident and supported by the large volume, which will be a more accurate and strong signal to enter the market. A stop loss should be placed slightly above the breakout volume bar. The potential of the deal is more than 100 points.
The Pound also showed a sharp fall and totally swallowed the recent rise. Besides it, the new level of support was formed, it’s 1.2670. The pair is testing this mark at the moment, so that we can ponder a scenario of its breakdown, which will consent us to open sales.
The sink should be supported by the large volume, which will be a more secure and precise signal for entering the market. A stop loss should be placed above the breakdown volume bar. A potential of the deal is more than 120 points.
The Yen adjusted up, but is still located inside the local range between the level of support 112.35 and the level of resistance 113.62 – 113.75. Hence, we can regard new deals only after the confident breakout of one of these levels and the exit of the price from the range. The breakout move must be sharp and supported by the large volume, which will be a more secure signal for entering the market.
The Canadian dollar rose up, but is still locked within the local range between 2 strong levels. They are the support level 1.3144 and the resistance level 1.3356. Considering these factors, we can regard new positions only after the keen and confident exit of the price from the consolidation. The breakout move must be supported by the large volume, which will insure us against a false breakout.
The Australian dollar tested the level of resistance 0.7383 and then corrected downwards. The pair is currently locked in the middle of the local range between this mark and the support level 0.7202. Thus, we should wait for the exit of the price from the range and only after that we can consider new positions. Moreover, the breakout move must be abrupt, confident and supported by the large volume, which will be a more reliable signal for entering the market.
Gold adjusted down after the creation of the new resistance level 1241.50, which contains increased volume. The drop was smooth and on the small volume. Given the recent sharp growth, we should give advantage to long positions.
We can enter the market and open purchases only after the resumption of the rise and a sure breakout of the new resistance. The move must be supported by the large volume. A stop loss should be placed below the breakout volume bar. A potential of the deal is more than 150 points.
The sentiment: the mood of the market affirms all our trading scenarios today, which is a good additional signal. As with all other currency pairs, we can consider new positions only after the keen and confident exit of prices from local ranges.