The uptrend for EUR/USD continued as the pair showed a strong and confident growth on Monday. The upward move was supported by increased volume and large ASK deltas, which means that buyers were dominating the market at that moment. Also we need to point out the new level of support 1.1785 – 1.1792, which contains large volume.
Given all these facts we should consider exceptionally long positions for the euro. It is better to enter the market after a small and smooth correction of the price to the level of support to obtain a better entry point. A stop loss should be placed below the level 1.1743. A potential of the deal is more than 100 points.
GBP/USD continued its growth, which began on Friday, and broke through resistance level 1.3150. The movement was sharp and on large volume, after which the price was fixed above the previous high. Also it is worth noting the new level of support 1.3172 – 1.3195, in which large volume is concentrated.
Given the presence of a local uptrend and a sure breakdown of the resistance, it is worth giving preference to long positions for the pound.
It is desirable to open long positions after a correction of the price to the support level in order to obtain a more profitable entry point and, as a consequence, an acceptable risk/profit ratio. A stop loss should be placed under the level 1.3123, from which the sharp breakout movement of the price upwards began. The potential of the deal is more than 100 points.
After a small upward correction, USD/JPY continued falling on Monday. The fall was confident, though without large volume. So the global downtrend for this currency pair remains relevant.
Unfortunately, there is no a good point of enter, because we don’t have a good place for a placing a stop loss. But anyway we should consider exceptionally short positions. We can enter the market after a smooth correction and the resumption of the fall on large volume. A stop loss should be placed above the beginning of the move. A potential of the fall is 90-100 points.
The situation for USD/CAD became difficult as the price grew up and broke out the resistance, so now the pair is trading in the consolidation. That’s why I advise you to stay out of the market and wait for the new movements on large volume, especially downward moves as the global downtrend is still actual.
The situation for the Australian dollar is also very tough for trading as the price is still trading in the consolidation, moreover, volume on the market is very small.
That’s why we need to wait for the appearance of large volume and creation of new volume levels or zones. Until that it is better to stay out of the market.
The price is trading in the local consolidation above the level of support 1263.40 – 1266.10. Pretty large volume is concentrated in this range, so that we should trade this instrument only after the breakout of the consolidation. Given the presence of the strong uptrend and support, we should give preference to long positions.
We can enter the market after the resumption of the growth of the price, preferably, on large volume. After the breakout of the local maximum we open long positions. A stop loss should be placed below the support level. A potential of the deal is up to 150 points.
The sentiment: all our scenario except gold are confirmed. For XAU/USD the situation remains the same: despite the 50/50 sentiment, long positions are in priority due to the uptrend.
The bottom line: EUR/USD and GBP/USD are in priority today. USD/JPY and XAU/USD are also pretty interesting pairs for trading, but we need to get additional signals to be able to trade them.