EUR/USD is still trading in the consolidation below its resistance level 1.0695. We need to highlight that huge volume is concentrated in it, so the exit from this range will start a strong movement.
Given the presence of the strong downtrend and the level of resistance we should consider opening short positions. But we need to wait for an additional signal, because the pair is trading in consolidation now. Such signal is a strong bearish momentum on large volume, especially after the test of the level 1.0695. This will be a great situation to enter the market. A stop loss should be placed at the level 1.0750. The target is 1.0550. Risk/profit ratio is about 1 to 2 that makes this deal even more interesting.
The situation for the pound remains the same, this currency pair is still trading in its global consolidation. We can’t highlight any new volumetric or technical level because the price is going like a zig-zag and volume is spread across the chart.
So now the situation for trading this instrument is pretty difficult, that’s why the best decision will be to stay out of the market.
It is worth highlighting a new resistance level 111.13 – 111.38. It stopped the correction of the price on Wednesday (by the way, the impulse price movement began from this level on Monday), also very large volume was concentrated in it, which pushed the price down. All these factors increase the value of this resistance. Given the strong and volumetric fall, as well as the presence of such a strong level, it is worth considering the scenario of opening short positions. We can enter the market after a smooth correction of the price to about 110.80 level on small volume in order to obtain a more favorable risk/profit ratio. Stop loss should be placed above the resistance level with a small margin. The potential of the deal is about 120 points.
It is necessary to highlight a new level of support 1.3379 – 1.3400 which stopped the fall of the price on Wednesday and contains huge volume. Given the fall of the oil price we should consider only long positions for USD/CAD. We can enter the market after a small and smooth correction of the price to get a better risk/profit ratio. Stop loss should be placed below the support level with a little margin. The target is 1.3525.
AUD/USD continued its fall and now we can highlight a presence of a local downtrend. Also we need to note the level 0.7612 from which the price started moving down. Given these fact short positions are in priority. We can enter the market only after a smooth correction of the price, because if we sell AUD/USD now, the stop loss will be pretty big. So after the rollback of the price we can open short positions with a stop loss set above the level 0.7612. The target is 0.7500.
Gold behave itself a pretty weird: on Wednesday we had a strong fall of the price on increased volume which was changed by a strong growth on large volume. But overall we are still in the consolidation.
Given the fact that the fall of the price was “ate” by the further growth and now is trading near its level of resistance, the possibility of the continuation of the growth is quite high. Long positions should be opened after a confident and strong breakout of the resistance level on large volume. A stop loss should be placed below the breakout volumetric bar. A potential of the deal is around 150 pips.
The sentiment: all our deals (except GBP, which is trading in the consolidation) are confirmed by the mood of the market.
The bottom line: USD/JPY, USD/CAD, AUD/USD have the best situations for trading. EUR/USD deal also has a potential but we need to get an additional signal.