The price fell down sharply on Monday, but volume was pretty small during the move, so we can’t highlight any new specific level or zone. Moreover, the pair is still located in the global consolidation, that’s why we need to wait for an exit of the price from the range and only after that we can consider opening new deals.
Given that the pair is trading near the lower boundary of the consolidation, the possibility of its breakdown is quite high.
While the pair is in the range, we should stay out of the market.
The pound has tested the lower boundary of the range, but remains trading in the consolidation. Also we need to point out that large volume is concentrated in this range, so the exit of the price from it will be a great signal for entering the market. Given that the pair is trading near the lower boundary of the range, the probability of its breakdown is quite high.
If the pair remains trading in the range, we should stay out of the market.
USD/JPY fell down pretty sharply and on large volume yesterday. This fact puts into a question our previous scenario of opening of long positions. We can resume considering them only after a breakout of the local maximum. If the price continues falling and breaks down the level 111.20, our scenario is canceled.
USD/CAD is testing the level of resistance 1.2345 – 1.2368. Now the pair is trading a little bit above this level, but volume on the market is low, so that it is too risky to open long positions now. We need to wait for the continuation of the growth on increased/large volume, which will be a great bullish signal. A stop loss should be placed below the beginning of the move. A potential of the deal is 100-110 pips.
The pair is testing the level of support 0.7923 – 0.7939, where large volume is concentrated. The breakdown of this level will be a great bearish signal. The move should be abrupt. A stop loss should be placed above the breakdown bar. A potential of the deal is up to 90 pips.
Gold showed a rapid growth on Monday and, as a result, broke through the previous level of resistance. Thus, the price came out of their local consolidation and is trading above it. It should also be noted that the breakout movement was on increased volume and a new support level of 1303.60-1306.00 was formed, in which fairly large volume is concentrated.
Therefore, it is worth considering the scenario of opening of long positions for this instrument. We should enter the market after a smooth correction of the price to the level of support (or its test) and the resumption of sharp growth. A stop loss should be placed under the level 1303.60 with a small margin. The potential of the deal is up to 200 points.
The bottom line: tough situation on the market as volume is low and many instruments are in consolidations or trading near important volume levels. That’s why we should be very careful and enter the market only after a strong confirming signal.