After the release of data on the labor market in the USA, EUR/USD, firstly, tested the resistance level 1.1692 – 1.1705, after which it fell sharply down. The movement was on large volume, which only strengthens its importance.
Given this fact, we should give preference to short positions for this currency pair. Sales should be opened after a smooth correction of the price up on small volume in order to obtain a more advantageous entry point. A stop loss should be placed above the level test (1.1693). The potential for a fall is about 120 points.
The pound continued its fall, but could not break through the global support level/lower border consolidation 1.3061 – 1.3090, in which very large volume is concentrated. Also it is worth noting the presence of a large accumulation of volume within the consolidation.
Thus, the scenario here is quite simple: we wait for the price to come out from the consolidation and then open new deals. The breakout movement must be sharp and on increased/large volume.
While the price is trading within the consolidation, it is better to be out of the market.
The Yen tested the support level of 113.62 – 113.76 after which the price continued its growth and once again tested the local maximum/resistance level, but could not finally break it. It is necessary to correct the level of resistance, which is now the level of 114.37.
Given that the price growth was on large volume, and the correction was smooth and on small volume, it is worth giving preference to long positions. Purchases should be opened after a sure breakdown of the resistance level on large volume too. A stop loss should be placed under the breakout volume bar. The deal’s potential is more than 110 points.
USD/CAD showed a precipitous fall on Friday and broke through the lower boundary of the consolidation, which is a strong bearish signal. It is also worth highlighting a new level of support 1.2724 – 1.2747, in which large volume is concentrated.
Given the strong fall of the price, it is worth giving preference to short positions for this currency pair. Sales should be opened after a confident and sharp breakdown of the support level on increased/large volume. A stop loss should be placed just above the breakdown volume bar. The potential of the deal is more than 100 points.
Despite the sharp fall of the price, AUD/USD continues trading in the consolidation between the two levels of 0.7643 and 0.7720, where very large volume is concentrated.
Thus, the best solution will be to open new positions after the price leaves the consolidation. Given the sharp fall of the price on large volume, it is worth giving preference to short positions. Sales can be opened after the breakdown of support on increased volume. A stop loss should be placed just above the breakdown volume bar. The deal’s potential is more than 60 points.
The price of gold fell very strongly on Friday and tested the support level/lower limit of the consolidation 1264.40 – 1266.00, after which the price rebounded up.
Also it is worth noting the presence of the large volume accumulation in this consolidation, so the best decision will be to wait for the price to come out from this range. The breakout movement must be sharp and on increased volume, which will be a more accurate signal for entering the market.
The sentiment: this indicator fully confirms our trading scenarios for the major currency pairs. For pound and gold, the sentiment is in equality, which is not surprising, given that these instruments are located in consolidations.
The bottom line: after the payrolls the situation on the market became very interesting and now there are a plenty of good deals that we may trade.