EUR/USD broke out the previous local maximum, but failed to continue growing and after a formation of the new resistance 1.1954 fell down. The correction of the price was on increased volume, but on the other hand there is a strong uptrend for EUR/USD, so that we still should give preference to long positions.
We can enter the market after a resumption of the growth and a sure breakout of the new resistance. The breakout movement must be abrupt and supported by large volume in order to avoid fake breakouts or moves. A stop loss should be placed below the breakout volume bar. A potential of the deal is 80-90 points.
The situation for the Pound is totally the same as for the Euro: the price broke out the resistance, but after a formation of the new one – 1.3375, the pair fell down sharply. The only difference is that the downward move was on small volume, so we still should consider long positions for this currency pair.
Purchases should be opened only after a confident and strong growth of the price and a breakout of the new level of resistance. The movement must be on large volume, which will be a more accurate signal for entering the market. A stop loss should be placed below the breakout volume bar. A potential of the deal is more than 140 points.
USD/JPY resumed its fall, but did not reach out target as the move was stopped by the new support level 110.90, where large volume is concentrated. So that we can consider short positions after a confident breakdown of the support on large volume, which will be a more accurate signal for opening new deals. A stop loss should be placed above the breakdown volume bar. A potential of the deal is 150+ points.
The pair grew up sharply yesterday, but is still located in the local consolidation 1.2669 – 1.2821, so everything remains the same for this currency pair – we can enter the market only after a sure exit of the price from the range.
Until that it is better to skip this instrument from our trading plan.
The Australian dollar tested the level of resistance/upper limit of the range, but failed to break it out and showed a strong fall. In general, the pair is still locked in the local consolidation 0.7538 – 0.7649. That’s why the best decision will be waiting for the price to come out from the range on increased volume, which will be a good signal for entering the market.
Gold showed a rapid price growth on Monday and broke out the previous level of resistance. Nevertheless, the upward movement was stopped by a new resistance 1299.00, in which fairly significant volume is concentrated, after that the price gradually corrected downwards and is located under this mark at the moment.
Thus, our scenario remains the same – long positions are still in priority, but we can enter the market only after a sharp and confident breakout of the resistance level on large volume, which will be a stronger and more accurate signal for opening purchases. A stop loss should be placed under the breakout volume bar. The potential of the deal is about 140-150 points.
The sentiment: this indicator confirms all our scenario except for USD/CAD and AUD/USD, as these pairs are located in ranges at the moment.
The bottom line: the situation on the market did not changed, so all our previous scenarios are still actual, especially after an appearance of strong additional signals.