On Monday, the pair EUR/USD showed a fairly sharp fall from the resistance level 1.1264 – 1.1279. Nevertheless, this bearish impulse was without volume, therefore it should be regarded as a purely technical correction of the price after a strong growth on Friday. In addition, during the Asian session, EUR/USD completely swallowed yesterday’s fall and is trading near the resistance level now, which is a good sign for its possible breakdown.
We can open long positions after a confident breakdown of the level 1.1264 – 1.1279 on increased volume with further fixation of the price above it to avoid a false breakdown. A stop loss should be put under the breakdown volumetric bar or the beginning of a breakout movement. The potential of the deal is 90 points.
The pound has broken out the level of resistance 1.2899 – 1.2913 and is trading above this level. The breakout move was on increased volume with pretty large ask deltas, which means that bulls were dominating on the market at that moment, so it is a good signal for opening long positions.
We can enter the market after the resumption of the growth of the price on increased volume. A stop loss should be placed below the level 1.2892. The target is the level 1.3040.
The yen has broken down the support 110.35 and is going down sharply. The breakout was on increased volume (as for the Asian session), so it is a good bearish sign.
We can enter the market after a smooth correction of the price to obtain a better entry point. A stop loss should be set above the level 110.45. A potential of the fall is around 100 pips.
USD/CAD has broken down the support level 1.3477, but failed to continue falling and is trading a bit below this level. So we should consider opening short positions, but after an additional signal, such as a continuation of the fall. When the price starts going down from the breakout point we open short positions, a stop loss should be set above the level 1.3482 and a potential of the deal is around 90-100 pips.
Our previous scenario for the Australian dollar was totally executed and the price is going up now. Unfortunately, there is no good entry point right now, because a stop lose will be huge and a potential of the deal will be too small. So that it is better to stay out of the market for this instrument and wait for the breakout of the local maximum.
After trading in the local consolidation above the level of support 1274.10 – 1277.00 the price continued growing on increased volume. It is a good bullish signal.
We can enter the market and open long positions after a smooth correction of the price to the level 1281.30 to get a better entry point. The best place for a stop loss is the level 1274.10. A potential of the deal is around 130 pips.
The sentiment: all our scenarios are confirmed by the mood of the market. Only the Canadian dollar has a 50/50 situation, so that we need to get an additional signal to be able to trade it.
The bottom line: almost all instrument have great situations for trading, so we need to watch for good entry points and open deals.