The Euro continued its fall and broke down the previous support level, which is a good signal for opening short positions. Nevertheless, now we can’t open sales, as the breakout movement was on the small volume, so there is a possibility of an upward correction + there is no good place for a stop loss.
Thus, short positions can be opened only after the appearance of the large volume and the continuation of the drop of the pair. This will be a more reliable signal for entering the market. A stop loss should be located just above the start of a sharp volume price decline. The potential of the deal is more than 100 points.
The Pound is trading in the small local range just overhead the local minimum at the moment. Yesterday the volume on the market was small, so we can’t point out out any new volume level or zone.
Considering the presence of a strong downtrend, we still should give advantage to short positions. We can enter the market after the resumption of the drop of the price and the breakdown of the local minimum. A stop loss should be located just above the breakdown bar. The potential of the deal is more than 120 points.
The Yen tested the support level of 109.02 – 109.22 and is located at this level at the moment, so we can regard the breakdown of this mark, which will be an excellent signal for entering the market and opening short positions. The breakdown move should be abrupt and supported by the large volume, which will be a more secure signal. A stop loss should be located just above the breakdown volume bar. The potential of the deal is more than 100 points.
The price broke the previous resistance level, which is a great bullish signal, but the move was on the small volume, so we can’t open long positions at the moment. That’s why we need to wait for the breakout of the local maximum and only after that we will be able to open purchases. A stop loss should be located below the breakout bar. The potential of the deal is about 110-120 points.
The Australian dollar demonstrated a sharp sink, but is still locked inside the local range between the support 0.7492 and the resistance 0.7600. Considering that the large volume is concentrated in this consolidation, the best decision is just to wait for a sure exit of the price from the range and only after that we can consider new positions with this currency pair. The move must be supported by the large volume, which will be a more precise signal for entering the market.
The price fell down yesterday, but the movement was on the very small volume, so we can’t regard short positions at this time. Moreover, given the recent keen growth on the large volume and the fact that the pair is still located near the resistance 1306.20, we can give a slight advantage to long positions.
We can enter the market after a resumption of the rise of the price and a confident breakout of the resistance level on the large volume, which will be a more secure signal for entering the market. A stop loss should be located just below the breakout volume bar. The potential of the deal is about 200 points.
If gold goes on falling, it is better to skip this instrument from our trading plan.
The sentiment: the mood of the market totally affirms our scenarios with EUR/USD, GBP/USD and USD/CAD, which is a good additional signal. The situation is unclear with USD/JPY and XAU/USD, since the sentiment shows the equality of buyers and sellers. It is necessary to wait for the price to come out of the local consolidation with AUD/USD and only after that we can consider new deals.