The euro continued its fall and broke through the lower boundary of the consolidation. The price movement was rather sharp, but on small volume, so it’s hard to single out a new volume level or zone. Nevertheless, the price exit from the range is an excellent bearish signal.
Thus, it is worth giving preference to short positions for the euro. We can enter the market after a smooth correction of the price up on small volume to get a more profitable entry point. A stop loss should be placed above the level of 1.1863. The fall potential is up to 110 points.
The pound broke down the lower boundary of the consolidation, but the move was on small volume, so we can’t trade it. Also we can’t point out any new volume level or zone.
That’s why we need to get an additional signal for opening short positions. Such a signal is a strong and sharp bearish momentum on increased/large volume. After that we can consider opening short positions.
The Yen resumed its growth and now is trading near the local maximum. So our previous scenario remains the same: we can open long positions after a sure breakout of the local maximum. The move should be abrupt and on increased volume. A stop loss should be placed below the breakout bar. A potential of the deal is up to 120 pips.
After a breakout of the resistance, the price could not continue growing and is trading near the local maximum 1.2400 right now. So that we can open long positions after a strong bullish momentum and a breakout of the 1.2400. A stop loss should be placed below the breakout volume bar. A potential of the deal is around 100 pips.
The price broke down the support level and continued falling. The downward move was on small volume, so we can’t point out any new specific level. Anyway, given such an abrupt fall, we should give preference to short positions.
We can enter the market after a resumption of the fall on large volume, so we can place a stop loss should above the beginning of the bearish momentum. A potential of the deal is 60 pips.
After a strong growth on Monday, gold fell down sharply and broke down the support level yesterday. The move was supported by increased volume, which is a good bearish momentum. Now the price is trading near the level of support 1288.50.
Given such a strong fall we should give preference to short positions. We can enter the market after a sure breakdown of the support 1288.50. Preferably, if the move is supported by increased or large volume, it will be a more accurate signal. A stop loss should be place above the breakdown volume bar. A potential of the deal is 130-140 pips.
The sentiment: this indicator confirms our deals for the Euro, the Yen and Australian dollar. For gold the situation is 50/50, so we need to wait for a breakdown of the support.
The bottom line: the situation on the market became clearer and now we have a couple of interesting scenarios for trading, especially for the Euro and the Yen.