The Euro continued falling and now is testing the level of support 1.1143, which contains the large volume. Therefore, our previous scenario remains relevant: we should consider a breakdown of this mark, which will allow us to open short positions.
The drop must be confident, keen and supported by the large volume, that will insure us against a fake breakout. A stop loss should be placed above the breakdown volume bar. A potential of the deal is more than 100 points.
The Pound continued its downward movement yesterday, moreover, the move was swift and confident. Thus, we can state that the downtrend continues, which is a strong bearish signal. In addition, it is necessary to allocate a new volume resistance level 1.2757. Given all these factors, we should give preference to short positions with this instrument.
Sales should be opened after a small and smooth upward correction of the price, in order to get a more profitable entry point into the market. A stop loss should be placed slightly above the resistance level. The potential of the deal is more than 120 points.
The Yen is testing the level of resistance/upper limit of the local consolidation 110.25. Therefore, we can and should consider a breakout of this level, which will be a great bullish signal. The surge of the price must be keen and supported by the large volume. A stop loss should be located below the breakout volume bar. Our first target is the level 110.90.
Nothing has changed with the Canadian dollar as the price is still located within the local consolidation between 2 strong volume levels. They are the support level 1.3382 and the resistance level 1.3514. Hence, we can open new positions only after the sharp and sure exit of the price from the range. Moreover, the movement must be supported by the large volume, which will insure us against a fake breakout.
While the price is trading inside the range, we’d better stay out of the market.
The Australian dollar tested the resistance level 0.6932, but could not break it out and then demonstarted an abrupt fall on the large volume. Thus, we still should give advantage to sales with this pair. We can enter the market and open short positions after a slight 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.
The price is located near the level of support 1267.30. Given the recent sharp fall supported by the large volume, we may consider a scenario of its breakdown, which will be a good bearish signal.
The drop of the price must be confident, keen and supported by the large volume, which will be a more accurate signal for entering the market. A stop loss should be placed above the breakdown volume bar. A potential of the deal is more than 150 points.
If the price continues trading inside this range, we’d better stay out of the market.
The sentiment: this technical indicator totally confirms all our trading scenarios (trading against the “crowd”), which is a strong additional signal for us. As with the Canadian dollar, we can open new positions only after the exit of the price from the local range.