EUR/USD is still trading in the consolidation. The pair grew up yesterday, but growth was on low volume. Moreover, whole volume on the market is low, so we can’t point out any new volume level or zone.
That’s why we should trade this currency pair only after the confident breakout of the boundaries of the consolidation. The move must be supported by large volume, it is a must condition. Until that we should stay out of the market.
The pound continued falling after the breakdown of the previous support level. The fall was smooth and on low volume, so that we can’t highlight any new volume level or zone. Anyway, it is a quite good signal for the further continuation of the downtrend and we should give preference to short positions.
We can enter the market after the appearance of large volume and strong bearish momentum, so we will be able to put our stop loss above this movement. Perfectly, if the price corrects up a little and then starts falling. A potential of the deal is around 100 pips.
The Yen resumed falling and is trading near the level of support 108.63 – 108.72, where large volume is concentrated and that has been tested 2 times. So that, we can consider opening short positions in case of the sure breakdown of this level. A move should be supported by increased or large volume. A stop loss should be placed above the breakdown volume bar. A potential of the deal is around 110 pips.
USD/CAD continued its fall and is currently trading near the 1.2530 support level, in which large volume is concentrated. It should be noted that the price fall was quite sharp and on increased volume, which is a pretty good signal for the continuation of the global downtrend and a breakdown of the support, which will give the opportunity to open short positions for the pair USD / CAD.
If the price confidently breaks the support level on large volume, then we can open short positions. A stop loss should be placed just above the breakdown volume bar. The fall potential is approximately 100 points.
The Australian dollar continues trading in the consolidation a little bit above the support level 0.7880. This range contains really large volume, so the best decision will be waiting for the exit of the price from this consolidation on increased volume and then consider opening new deals. Until that it is better staying out of the market.
Despite the growth of the price on increased volume yesterday, gold is still trading in the global consolidation between two strong volume levels.
So our previous scenario remains the same, we can and should enter the market only after the confident and sharp breakout of the boundaries of the consolidation on large volume. It will be a great signal for considering new deals for this instrument.
The sentiment: this indicator confirms our scenarios for the pound, the yen and the Canadian dollar. For all other instrument is does not matter as they are in consolidations.
The bottom line: entering the market only after the appearance of strong confirming signals as volume on the market is pretty low and many pairs are trading in ranges.