EUR/USD has not been able to break through the resistance level of 1.0795 – 1.0816 for two straight days. This level contains large volume that stopped the growth of the instrument. In addition, if you look at the D1 chart, it is clear that even this level is the previous global maximum, that only enhances its value for the trading the euro. Thus, the level of 1.0795 – 1.0816 is the cornerstone to trade the pair EUR/USD.
Also, the level of 1,0669 – 1,0685, which is an indicative zone of buyers’ strength, remains relevant. Short positions can’t be considered before a breakout of this level.
Thus, it is also not worth selling from the level of resistance, it is necessary to trade its breakout on increased volume, which will be an excellent signal for opening long positions. Stop loss should be put at the level 1.0772. A potential of the deal is about 100-120.
In case of correction of the price from the resistance, you just need to be out of the market.
After the little correction of the price GBP/USD resumed its growth on increased volume. During this move a new level of resistance was created, it’s 1.2430 – 1.2453. It contains huge volume that makes this level very important for trading this currency pair.
Of course, after such sharp movement + strong uptrend only long positions should be considered for trading. Purchases can be opened after a smooth corrections of the price to support. It is necessary to get a better price for entering a position. Stop loss should be placed a bit lower than 1.2430. A potential of the deal is 100 pips.
USD/JPY continues to fall down and now is trading below its previous global minimum. The level of resistance 111.82 – 112.10 is still actual and good for putting stop losses above it. But now, unfortunately, there is no point for enter, because the price is too far. The only way to open short positions is to wait for the correction of the price and after the resuming of falling we can sell USD/JPY. A potential of the deal is around 120-130 pips.
After the fake breakout of the resistance, USD/CAD returned to the consolidation: the support 1.3275 – 1.3284 and the resistance 1.3358 – 1.3384. Scenario of trading remains the same: after the breakout of the consolidation and a fixation of the price below/above the boundary of the range, we enter the market. Stop losses should be set below/above the breakout bars. Potential for a growth is 80-90 pips, for a fall – 100-120 pips.
AUD/USD tested the support volumetric zone 0.7625 – 0.7663 and rebounded back into the consolidation. The level of resistance 0.7736 – 0.7748 is still relevant. So we can open positions only after the breakout of boundaries of the consolidation. But still, long positions are in priority because of the uptrend and a presence of strong support zone.
XAU/USD is still trading a little bit above the level of support 1239.60 – 1242.60. This level contains huge volume and is a good place for a stop loss.
The scenario of trading gold is pretty simple: waiting for a smooth correction of the price to the support level, stoppage of a fall and then entering the market with the stop loss below the level 1239.60. A correction must be smooth and on small volume. First target is the local maximum, after the price reaches it, we should move our stop loss to breakeven. Then just wait for further movement of the instrument.
Sentiment: scenarios for the euro, the pound, the yen and gold are confirmed. USD/CAD and AUD/USD sentiments tell us to watch for long positions, but these 2 pairs have very indefinite for trading.
The bottom line: GBP/USD and XAU/USD are prior instruments for trading today.