The Euro could not continue its decline and sharply corrected up yesterday. At the moment, the pair is trading in the middle of the local range between 2 strong volume levels. They are the support 1.1267 and the resistance 1.1463. It is also necessary to note the large volume accumulation within this range.
Thus, we can consider new trading scenarios only after a sharp and rapid exit of the price from the local range. Moreover, this movement should be supported by the large volume, which will insure us from a false breakout and will be a more reliable signal to enter the market.
The Pound showed a sharp growth, but the rise was on the small volume, so we can’t allocate any new volume level or zone. Furthermore, there is a strong downtrend with this pair, hence, we still should give avvantage to sales.
Short positions can be opend after a stoppage of the adjustment and a resumption of an abrupt drop, 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 beginning of this move. A potential of the deal is more than 120 points.
The Yen is still trading near the resistance level/upper boundary of the local consolidation 113.62 – 113.75. Thus, our previous scenario remains actual: we can consider a breakout of this mark, which will allow us to open long positions. The surge must be supported by the large volume, which will insure us against a fake breakout. A stop loss should be placed below the breakout volume bar. A potential of the deal is around 80 points.
The Canadian dollar adjusted down and is located in the middle of the local consolidation between 2 strong levels now. They are the support 1.3270 and the resistance 1.3429. Therefore, we can regard new positions only after the breakout of one of these levels and the exit of the price from the range. The movement must be keen and supported by the large volume, which will be a more secure and precise signal for entering the market.
The Australian dollar carries on trading inside the local range between the support level 0.7183 and the resistance level 0.7283. Thus, the best solution with this currency pair is just to wait for the exit of the price from the consolidation and only after that we can consider new positions. The movement must be abrupt and supported by the large volume, which will insure us against a fake breakout.
Gold goes on trading nigh the support level 1242.70. Nevertheless, given the presence of the strong uptrend with this instrument, we still should prefer a scenario of opening long positions.
We can open purchases after a resumption of the sharp growth supported by the large volume, which will be a more secure and precise signal for entering the market. A stop loss should be placed below the support level. A potential of the deal is more than 150 points.
The sentiment: our trading scenarios with GBP/USD, USD/JPY and XAU/USD are confirmed by this indicator, which is a good additional signal. As with other pairs, we can consider new positions only after the exit of prices from local consolidations.