After the strong growth of the price on Wednesday, the pair fell down sharply yesterday. The move was supported by large volume. Also the new resistance was created – 1.1838 – 1.1846, in which large volume is concentrated. On the other hand, there is a strong support level – the local minimum, which was tested 2 times. So that the pair is locked between these levels and the best decision is to wait for the breakout of this local range. Only after that we will be able to consider new deals here.
The Pound did not react significantly on the news yesterday and the price was trading in the local range a little bit above the level of support 1.3370 – 1.3381, so that our previous scenario remains the same: we may open long positions after a smooth downward correction in order to get a better entry point. A stop loss should be placed below the support. The target – 1.3544.
Our scenario for the Yen was totally executed as the price fell down sharply after the test of the resistance 112.72 – 112.86, so that we should give preference to short positions at the moment. We may enter the market after a smooth upward correction. A stop loss should be placed above the resistance with a little margin. A potential of the deal is 90-100 points.
USD/CAD fell down strongly and broke down the lower limit of the local consolidation. The move was abrupt and supported by large volume. That’s why we should consider exceptionally short positions, but only after the breakdown of the fresh support level 1.2723. The breakdown move must be sharp and supported by large volume. A stop loss should be placed above the breakdown volume bar. A potential of the deal is more than 100 points.
After a rapid price increase, the pair AUD / USD began to bargain in a small local consolidation near the high. In this consolidation, the increased volume is concentrated, which increases the value of the price out of it, and given that the pair has grown on a large volume before that, it is worth giving preference to long positions on this instrument.
Purchases can be opened after the resumption of price growth and a sure breakdown of the local maximum. Ideally, the breakout movement should be sharp and on an increased volume, which will be a more accurate signal for the continuation of the local uptrend. Stop the loss is worth slightly below the volume breakout bar. The potential of the deal is 80-90 points.
Nothing has changed for gold as the price is located in the local consolidation. Yesterday the instrument was trading in the middle of this range + volume was small, so that we can’t point out any specific volume levels. In such case the best decision will be just to wait for the exit of the price from the consolidation and only after that we can consider new deals here.
The sentiment: this indicator confirms our scenarios for GBP/USD, USD/JPY and AUD/USD, so these 3 majors are in priority today (as we trade against the “crowd”).
The bottom line: the situation on the market did not change a lot, so that almost all our previous trading scenarios are still actual.