After the breakdown of the upper limit of the local consolidation, EUR/USD was unable to continue its growth and after the creation of the pin-bar it corrected downwards. It is worth noting that both price growth and fall were on small volume. It should also be noted that the pin bar did not contain also large volume, so it should not be regarded as some kind of reversal signal.
Thus, our previous scenario of opening long positions remains relevant. We can enter the market after the resumption of the growth of the price on increased volume, which will be a more accurate signal for the continuation of the global uptrend. The bullish momentum can be, either from the current level, and after a slight correction of the price down. A stop loss is worth slightly lower than the support level 1.1785 – 1.1792, in which a large volume is concentrated and which has already been tested. The potential of the deal is about 100 points.
The pair is still trading in the local consolidation a little bit above the level of support 1.3172 – 1.3195. This range contains quite large volume accumulation, so we can presume that big players are gaining their positions there. Also, given the uptrend, we should consider long positions.
That’s why we should enter the market after the resumption of the growth on large volume. The move should be sharp and confident. It can be either from the current level, or after a smooth downward correction of the price. A stop loss should be placed below the level of support 1.3172 – 1.3195. A potential of the deal is more than 100 points.
Despite the strong fall of the price on increased volume yesterday, it is still trading in the local consolidation above the fresh level of support 109.97 – 110.20. Given the strong downtrend, we should give preference to short positions, but we can enter the market only after a confident breakdown of this level. The move should be supported by increased volume. A stop loss should be placed above the breakdown volume bar. A potential of the deal is 110-120 points.
USD/CAD continued its growth, but the move of the price was smooth. Moreover, we need to note that volume is going down while the price is rising, so that we can’t and shouldn’t open long positions. Besides it, global downtrend for this pair is still relevant.
Unfortunately, volume is spread throughout the chart, so we can’t point out any fresh volume level or zone, that’s why it is too difficult to predict further move of the price + we don’t have a good place for a stop loss. That’s why the best decision will be just stay out of the market.
The situation for AUD/USD remained the same, the price is trading in the global consolidation which contains quite large volume inside. So that our previous scenario remains actual – we should stay out of the market until the beginning of the trend and the breakout of the boundaries of the range.
The price has broken down the support level during the Asian session and is trading below it. It should be noted that the fall of the price was on really small volume, so we can’t trade this move! Moreover, there is a strong uptrend for gold, that’s why we should not open short positions now.
On the other hand, until the breakout of the resistance 1273.30 we also can’t open long positions. So that we should stay out of the market and wait for fresh volume levels or zones and the breakout of the resistance on large volume. Now, there is no good situation for trading XAU/USD.
The sentiment: our scenarios for the euro, the pound and the yen are confirmed by the mood of the market. As for all other instruments, now it is better to stay out of the market.
The bottom line: the situation on the market is pretty tough and it seems like it is waiting for the release of the payrolls tomorrow and won’t show any strong moves until that. So we should be extremely careful.