The Euro continued falling, but is still locked within the local consolidation between the level of support 1.1244 and the level of resistance 1.1416. Besides it, we should also point out that the large volume is concentrated within this consolidation.
Thus, the best solution with this instrument is just to wait for the exit of the price from this range and only after that we can open new positions. Besides it, the breakout movement must be keen and supported by the large volume, which will be a more accurate and reliable signal for entering the market.
While the price is locked inside this range, we’d better skip this instrument from our trading plan.
The same situation with the Pound. The price went on sinking, but is still locked inside the local range between the level of support 1.2985 – 1.2998 and the level of resistance 1.3304. Both levels contain the large volume.
Thus, we can consider new positions only after the confident breakout of one of these levels and the sharp exit of the price from the consolidation. Furthermore, the breakout movement must be abrupt and supported by the large volume, which will be a more reliable signal for entering the market.
Until that, while the price is trading inside this consolidation, we’d better stay out of the market.
The Yen tested the level of resistance 112.00, but failed to break it out. On the other hand, it is still located near this mark. Hence, our previous scenario remains relevant: we can regard a breakout of this level, which will be a great bullish signal. The rise of the pair must be confident 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.
If the price corrects downwards, we should stay out of the market.
The Canadian dollar endured rising and broke out the previous resistance, which is a great bullish signal. Unfortunately, the movement was smooth and on the small volume, so that we can’t allocate any new volume levels or zones. Hence, we should give preference to long positions, but we can enter the market after the continuation of the surge, but the move must be supported by the large volume, which will be a more reliable signal. A stop loss should be placed below this growth. A potential of the deal is more than 120 points.
The Australian dollar fell down and broke down the previous level of support, which is a great bearish signal. The move was on the increased volume, that enhances its importance. So now we should prefer a scenario of opening short positions. We can enter the market after a smooth upward correction of the price, in order to get a more profitable entry point. A stop loss should be placed above the beginning of the breakdown move. A potential of the deal is more than 100 points.
After the test of the level of support 1282.00, the price corrected upwards. Nevertheless, the price is trading nigh this mark and given the recent sharp drop on the large volume, we can consider a scenario of its breakdown, which will be a great bearish signal and will allow us to open short positions.
The drop must be supported by the large volume, which will insure us against a false breakout. A stop loss should be placed above the breakdown volume bar. A potential of the deal is more than 150 pips.
The sentiment: this technical indicator fully affirms all our trading scenarios today, which is a great bullish signal (trading against the “crowd”). As with the Euro and Pound, we can open new positions only after the sharp exit of pairs from local ranges.