The Euro fell down sharply and broke the previous level of support. Moreover, the movement was supported by the increased volume and the new resistance was created, it is 1.2342 – 1.2357. Given all these factors, we can regard short positions at the moment, but this deal is more as intraday.
We can enter the market after a smooth upward correction of the price on the small volume, in order to obtain a more profitable entry point. A stop loss should be placed above the new level of resistance. The target is the local minimum 1.2240.
The Pound also showed an abrupt drop yesterday, but the move was on the small volume. Moreover, the pair is still located in the local consolidation. But we must note that the price is testing the level of support/lower limit of the range 1.4057 at the moment.
Thus, we can consider a scenario of the breakdown of this mark, which will be a good bearish signal and will consent us to open short positions. The move must be supported by the large volume. A stop loss should be placed above the breakdown volume bar.
While the pair is in the range, we should stay out of the market.
The Yen continued its local growth and broke out the previous resistance level. Moreover, the breakout movement was sharp and on the large volume, which is an excellent bullish signal. It is also necessary to allocate a new volume support level of 106.11 – 106.28, which was formed during this movement.
Given all of the above factors, we can consider the scenario of opening long positions for this currency pair. We can enter the market after a small and smooth correction of the price down on the small volume to get a more profitable entry point. A stop loss must be placed below the support level. The potential of the deal is about 100 points.
The Canadian dollar corrected upwards, but is still locked within its local range of 1.2818 – 1.3100. Therefore, we can regard new deals here only after a confident and sharp exit of the price from the consolidation. The breakout movement must be supported by the large volume, which will insure us against a fake breakout.
Until that, while the price is trading inside the range, we should stay out of the market.
The Australian dollar broke down the previous level of support, but the move was smooth and on the small volume, so we can’t open short positions from the current level. It is necessary to wait for an additional signal – resumption of the sharp fall on the increased volume, that will allow us to open sales. A stop loss should be placed above the start of the movement. A potential of the deal is around 80-90 points.
Gold sharply dipped yesterday and the price is testing the level of support 1323.10 – 1324.40 at the moment. So even despite the fact, that drop was on the average volume, we can consider a scenario of the breakdown of this mark, which will be a good bearish signal.
The breakdown movement must be supported by the large volume, which will be a more reliable sign for entering the market. A stop loss should be located above the breakdown volume bar. The target is the level of 1310.00.
The sentiment: this indicator confirms our scenarios with the Yen and Australian dollar, which is a good additional signal. The mood of the market has not reacted on the changes of the market, so we need to wait for appearance of new strong signals.