The euro is still trading near the local maximum and the level of resistance 1.1264 – 1.1279, which is the cornerstone of trading this pair. It’s breakout will be an excellent signal for opening long positions. Also the uptrend for euro is still actual, so this fact tells us that purchases should be in priority.
The breakout should on increased volume and the price should be fixed above the mark, so avoid the fake move. Then we open long positions with a stop loss placed below the breakout bar or the beginning of the growth. A potential of the deal is around 90 pips.
After the breakdown of the resistance level, the pound has corrected itself and is currently trading within this level. Correction of the price was on small volume, so it should not be regarded as a reversal movement. Moreover, volume was at the bottom of the movement, and there were mostly ask deltas, which means the preponderance of buyers.
Thus, our previous scenario of opening long positions remains relevant, but we should wait for the beginning of the price growth from the level on increased volume, which will confirm the final breakdown of the consolidation and the yield of the price upwards. A stop loss should be placed below the beginning of growth or for the daily low. The main target of the deal is the level of 1.3040.
The yen continued falling down and is trading near the local minimum. The fall was sharp, so we should consider only short positions for this instrument.
We need to wait for a correction of the price to get and acceptable stop loss size and risk/profit ratio. A upward move should be smooth and without volume, some kind of technical correction. A stop loss should be placed above the level 110.45. A potential of the deal is around 100 pips (after a correction).
Our scenario for USD/CAD is confirmed as the price is falling down now after the test of the breakout point. Given the continuation of the fall and the downtrend, we should consider opening short positions. We can enter the market after a small correction, a stop loss should be placed above the level 1.3487. A potential of the fall is around 80 pips.
The Australian dollar continued growing and the price broke out the previous maximum sharply and on increased volume. This is a good sign that bull are dominating the market. In such case we should regard only long positions.
We can enter the market after a smooth correction of the price to get a better entry point. A stop loss should be set below the level 0.7497. A potential of the growth is around 80 pips.
The price grew up strongly and then was trading in the local consolidation. Also we need to highlight a new resistance level for gold 1295.10. It is the upper boundary of the consolidation that contains pretty large volume.
Given the uptrend we should consider opening long positions after the breakout of the level 1295.10. The move should be supported by increased volume and be sharp. A stop loss should be placed below the breakout volume bar. A potential of the deal is around 150 pips.
The sentiment: all our scenarios except USD/CAD are confirmed by the mood of the market, so we have a plenty of good situations for trading.
The bottom line: EUR/USD, GBP/USD and XAU/USD have the best situations for trading right now.