The Euro is still trading inside its local consolidation between two strong volume levels. They are the support of 1.2280 and the resistance of 1.2411 – 1.2426. Therefore, our previous scenario remains actual: we can enter the market only after a sure exit of the price from this range.
The breakout movement must be supported by the large volume, which will be a more accurate and secure sign for opening new positions here.
Until that, it is better to stay out of the market.
The Pound continued its local growth and the price is testing the upper limit of local consolidation/resistance level 1.3908 at the moment. Thus, we can consider the scenario of a breakout of this mark, and given that the large volume is concentrated within this range, it will be an excellent signal for opening long positions with the GBP/USD pair.
The breakout movement must be sharp and supported by the large volume, which will be a more accurate and reliable signal for entering the market. A stop loss should be placed just below the breakdown volume bar. The potential of the deal is about 150 points.
The situation with this currency pair has not changed as the price is still locked within the local consolidation 105.43 – 107.83. Thus, the best decision with the Yen is just to wait for the confident exit of the price from the range on the large volume, which will be a good signal for opening new positions here.
While the pair is located in this range, we should omit this instrument from our trading plan.
The Canadian dollar tested the level of support/lower limit of the range 1.2818 yesterday and the price is still trading at this level. That’s why our previous scenario is relevant – we should give preference to sales. We can open short positions after the sharp breakdown of this mark. The move must be supported by the large volume, which will be a more reliable signal for entering the market. A stop loss should be located a little bit above the breakdown volume bar. A potential of the deal is 110-120 points.
The Australian dollar rose up and tested the upper limit of the range/resistance 0.7878. The price is still trading at this level, so that we can consider a scenario of its breakout which will be a great bullish signal. The breakout must be supported by the large volume, which will be a more reliable and stronger signal. A stop loss should be placed beneath the breakout volume bar. A potential of the deal is around 80-90 points.
The pair tested the level of support 1313.50-1317.50 and adjusted upwards yesterday. At the moment the price is located inside the local consolidation between this level and the resistance level of 1340.00. As can be seen from the volume chart below, this range contains large volume, so the best decision with gold is just to wait for the breakout of one of these levels.
The breakout movement must be abrupt and confident + supported by the large volume, in order to insure us against a fake move. Moreover, it will be a more secure sign for opening new deals here.
Until that, we should stay out of the market with gold.
The sentiment: this indicator affirms our deals with the Pound and the Australian dollar, which is a good additional confirming signal. Thus, these 2 currency pairs should be in priority today. With other pairs we should wait for consolidations’ breakouts.