The Euro showed an abrupt drop yesterday, but is still trading inside the local range between the support level 1.1267 and the resistance level 1.1463. Besides it, we must allocate the large volume accumulation within this consolidation.
Hence, we can regard new trading scenarios only after the confident and sharp exit of the pair from the range. Furthermore, the move should must be supported by the large volume, which will insure us against a fake breakout and will be a more accurate signal for entering the market.
The Pound showed a significant and rapid decline and broke down the previous support level yesterday. Moreover, the price drop was supported by the large volume, which only strengthens its value and is an excellent bearish signal. Now the price is trading near the new volume level 1.2521 – 1.2540, which stopped the downward movement. Nevertheless, taking into account all factors, we should give preference to sales with the Pound.
Short positions can be opened after the continuation of the fall and a sharp breakdown of the support level on 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 Yen rose up strongly, but is still locked within the local range between 2 volume levels. They are the support level 112.21 and the resistance level 113.62 – 113.75. Considering all these factors, we can regard new deals only after the breakout of one of these levels and the abrupt exit of the price from the consolidation. The move must be supported by the large volume, which will insure us against a false breakout.
The Canadian dollar also demonstrated a sharp growth on the large volume yesterday. The pair is currently located near the level of resistance/upper boundary of the local range 1.3429. Therefore, we can consider a scenario of its breakout, which will allow us to open long positions. The rise of the pair must be abrupt and supported by the large volume. A stop loss should be placed below the breakout volume bar. A potential of the deal is more than 100 points.
The Australian dollar broke down the previous support level, but the more was on the small volume, so we can’t open short positions at the moment. We also should point out the resistance level 0.7238, which contains the large volume. Hence, we can open sales after a smooth upward correction, in order to get a more profitable entry point. A stop loss should be placed above the resistance level. A potential of the deal is more than 80 points.
Gold tested the support level 1242.70, but could not break it down, after that it resumed rising. Considering the presence of the strong local uptrend, we should give preference to long positions with this instrument.
However, we can enter the market after a continuation of the growth, but the move must be supported by the large volume, which will be a more secure signal for entering the market. A stop loss should be placed below the level of support. A potential of the deal is more than 150 points.
The sentiment: the mood of the market fully confirms all our scenarios today, which is a nice additional signal. As with EUR/USD and USD/JPY, we can open new deals only after the sure exit of prices from local ranges.