The situation for the euro is totally difficult: the pair fell down sharply, but the downward move was on very small volume, so we can’t consider it as a confident breakout of the consolidation and reverse of the uptrend. Besides it we can’t highlight any new volume level or zones that can be used for trading the euro.
So overall, we neither buy EUR/USD, because we have a strong resistance 1.1231 – 1.1243, nor sell it, because there is an uptrend + the fall of the price was without volume.
In such a situation we should stay out of the market and wait for an appearance of volume on the market.
After the breakdown of the global consolidation and a sharp fall of the price, the pound is trading near its support level of 1.2783 – 1.2792 now . This level is the cornerstone for trading this currency pair, as it contains large volume that stopped the price fall.
Also it is worth noting a presence of a large accumulation of volume at the top of the chart, which acts as a resistance and puts pressure on the price.
Thus, short positions are seen as the top priority option for trading now. We can sell GBP/USD after a confident and sharp breakdown of the support level of 1.2783 – 1.2792 on increased volume, which will protect us from false movements. A stop loss should be placed just above the breakdown volumetric bar. The potential of the fall is about 100 points.
The yen is testing the lower boundary of its local consolidation now. Given the downtrend and a presence of the strong resistance 111.66 – 111.85, if the price breaks it down, we should open short positions. A stop loss should be placed above the beginning of the price fall. A potential of the fall is around 110 pips.
The Canadian dollar is still trading in the local consolidation, so we can’t point out any new level or zones that can be used in trading this pair. Anyway, given the downtrend and a growth of the oil price, we should consider short positions for USD/CAD. But due to the consolidation, it is necessary to wait for a confirming signal.
We can enter the market after a strong bearish momentum on large volume. A stop loss should be placed above the beginning of the fall. A potential of the deal is around 100 pips.
The situation for the Australian dollar remains unclear as the price is trading in the consolidation. Volume on the market is very small, so that we can’t highlight any new volumetric levels or zones.
In such case it is preferable to stay out of the market and wait for the appearance of large volume.
Gold is trading in a small consolidation near the local maximum after the breakout of the previous resistance. This range will be a good place for a stop loss as it contains notable volume. Also we should keep in mind the strong uptrend for this instrument.
So given all these fact we should consider long positions as a main scenario for trading gold. We can enter the market after a resumption of the growth on large volume, an ideal situation will be a strong bullish momentum. It will tell us that buyers have enough power to push the price up. A stop loss should be placed below the level 1264.00. A potential of the growth is around 150 pips.
The sentiment: the yen and gold deals are confirmed by the mood of the market. As for the pound and the Canadian dollar, we need to get additional signals to be able to trade these instruments. For the Australian dollar short positions should be in priority, for the euro situation is contrary, but we still can’t trade this pair.
The bottom line: the yen and gold are in priority today. The pound also has an interesting situation for trading if the price breaks down the support.