After a false breakout of the upper limit of the consolidation/local maximum, EUR/USD returned trading in the consolidation. It is also worth highlighting a new level of resistance 1.1692, which is concentrated increased volume, that pushed the price down. The reaction of the price to this level was quite sharp, which increases its value.
It should be noted that a large volume is concentrated in the range, so a sure exit of the price from it will be an excellent signal for entry. Despite the fact that now the price is in the flat, there is the global uptrend for the euro, so long positions are in priority.
We can open the purchase only after the resumption of price growth and a breakout of the resistance level 1.1692 on increased volume with further fixation above it. A stop loss should be placed slightly below the volume breakout bar. The potential of the deal is about 80-90 points.
Nothing has changed for the pound as the price is still trading in the global consolidation and volume on the market is really small, so we can’t highlight any volume level or zone.
That’s why our scenario remains the same: we stay out of the market until the appearance of large volume on the market or the beginning of a new trend.
The Yen has corrected up and is trading near the resistance level 112.19 – 112.26, which contains increased volume. So now the price is pretty good for opening short positions. But it’s better to wait for the stoppage of the correction and resumption of the fall and then enter the market. A stop loss should be placed above the resistance. A potential of the deal is 120 points.
USD/CAD is trading in the local consolidation near the minimum. This range contains pretty large volume, so the exit of the price from it will be a good signal for entering the market. Of course, given the strong downtrend we should consider opening short positions.
We can enter the market after the breakdown of the lower boundary of the consolidation with further continuation of the price fall. A stop loss should be placed above the higher boundary of the consolidation. A potential of the deal is around 100 pips.
The Australian dollar is trading in the consolidation where large volume is concentrated. The resistance 0.7961 is still actual too.
The price has been trading in this range for quite a long time, so the continuation of the uptrend is under the question.
Anyway, we can enter the market only after the confident and strong exit of the price from the consolidation on large volume. Until that we should stay out of the market.
The price is in the downward correction now. The fall is quite abrupt and supported by increased volume, so we can’t open long positions for gold at the moment. The level of support 1238.30 – 1239.70 is still relevant.
That’s why we need to get an additional signal to be able to open long positions. Such a sign will be a stoppage of the correction and a strong bullish momentum on large volume. A stop loss should be placed below the support. A potential of the deal is more than 120 pips.
The sentiment: due to this indicator, our EUR/USD and USD/CAD scenarios are confirmed. USD/JPY and XAU/USD should be traded carefully. For the pound and Australian dollar long positions should be in priority, but these instruments are in consolidations now.
The bottom line: the situation on the market is quite tough as many pairs are trading in either consolidations or corrections.