After a slight upward correction in the price, EUR/USD showed a sharp fall of the price, after which the previous level of support was broken down. The downward movement was on large volume, which is a more reliable signal. Unfortunately, volume was evenly spread throughout the bearish bar, so there is no way to single out a new volume level or zone. Nevertheless, after such a strong fall and breakdown of support, it is worth considering short positions.
We can open short positions after a continuation of the fall of the price on increased volume, which will be an excellent signal for the continuation of a local downward movement. The fall can start either from the current level, or after a slight correction. A stop loss must be set for the level of 1.1771 (the correction after the breakdown of the level). The potential of the deal is 100-110 points.
GBP / USD continued falling, while the price decline was sharp and on increased volume. Also it is worth noting the new support level of 1.2959, in which increased volume is concentrated and which is a local minimum.
So that we should give preference to short positions, but we can enter the market only after the sure breakdown of the fresh level of support on increased volume. After the fixation of the price below this level we can open short positions with a stop loss placed above the breakdown volume bar. A potential of the deal is around 120 pips.
The Yen fell down and broke down the level of support 109.97 – 110.20. The move was pretty abrupt, but on average volume, so that we can’t trade this movement now. But anyway, it is a good signal for the possible resumption of the global downtrend. That’s why we should consider only short positions.
We can enter the market after the continuation of the fall on increased volume, so it will be more sure signal. A stop loss should be placed above the level 110.32. A potential of the deal is around 100-110 pips.
The pair is trading in the local consolidation near the local maximum. Also we need to point out the new level of resistance 1.2701, where increased volume is concentrated. But the price did not show a strong reaction on this level, so we should consider its breakout as the priority scenario. If the pair breaks it out on large volume, we can open long positions, moreover as we have a confident uptrend. A stop loss should be placed below the breakout volume bar. A potential of the deal is more than 100 pips.
AUD/USD has broken down the support level and is foxed below it. This is a great signal for opening short positions. The fall was rapid, but on average volume, so we need to wait for the continuation of the fall on large volume to avoid fake moves. If we get such a signal, we can open short positions with a stop loss placed above the level 0.7915. A potential of the fall is 100 pips.
Gold had broken down the support, but instead of the continuation of the move, the price strongly rebounded up and is trading in the consolidation now. Also we need to point out the new level of support 1252.70 – 1254.20 which contains large volume from which the price grew up rapidly. The higher boundary of the consolidation 1273.80 also very important as pretty large volume is concentrated there.
As the price is in the middle of the range, it is very difficult to predict the further move of the price. That’s why we need to wait for the exit of the price from the consolidation. The breakout must be confident and on large volume. Until that it is better to stay out of the market.
The bottom line: EUR/USD, USD/JPY and AUD/USD are in priority today. GBP/USD and USD/CAD are also quite interesting for trading. As for gold, we should stay out of the market.