The Euro restarted growing yesterday, but the move was on the small volume, so that we can’t allocate any new volume levels or zones. Besides it, the price is located within the local consolidation between the support 1.1267 and the resistance level 1.1463. The large volume is concentrated within this range.
Considering these factors, the best solution with this pair is just to wait for the exit of the price from this local consolidation. The breakout movement must be confident and sharp + supported by the large volume, which will be a more reliable signal for entering the market.
The Pound also rose up, but the upward movement was smooth and on the small volume, so we can’t regard purchases at the moment. Furthermore, considering the presence of the strong downtrend, we still should give advantage to short positions.
Nevertheless, we can enter the market only after the resumption of the sharp sink, supported by the large volume, which will be a more reliable and accurate signal. A stop loss should be placed above this move. A potential of the deal is more than 100 points.
The Yen showed an abrupt drop and is located near the level of support/lower limit of the local range 112.21 now. Thus, we can and should consider a scenario of its breakdown, which will be a nice bearish signal. The sink must be supported by the large volume, which will insure us against a false breakdown. A stop loss should be placed above the breakdown volume bar. A potential of the deal is more than 100 points.
The Canadian dollar indicated a smooth surge, but is located near the resistance level/upper boundary of the local range 1.3429. Thus, we can deliberate a scenario of its breakout, which will be a strong bullish signal. The movement must be sharp and supported by the large volume, which will be a more precise signal for entering the market. A stop loss should be placed below the breakout volume bar. A potential of the deal is more than 100 points.
The Australian dollar corrected up yesterday and is currently located in the middle of the local consolidation. The boundaries of the range are the support level 0.7152 and the resistance level 0.7238. Therefore, we can open new deals here only after the confident and abrupt breakout of one of these levels and the exit of the price from the range. The move must be supported by the large volume, which will insure us against a fake breakout.
The price of gold showed a significant and sharp increase on the large volume yesterday, which is a good bullish signal. Moreover, there is a strong local uptrend with gold, so we should give preference to long positions with this instrument.
Nevertheless, purchases can be opened after the continuation of this movement and confident breakout of the local maximum. The growth of the pair should be 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 below the breakout volume bar. The potential of the deal is more than 150 points.
The sentiment: the mood of the market confirms our trading scenarios with the Yen, Canadian dollar and gold. The situation with the Pound is 50/50, therefore, we should wait for the appearance of the stronger signal. As with other instruments, we should stay out of the market until the exit of pairs from local consolidations.