After the ECB press conference, EUR/USD showed a rapid growth on very large volume. After that, a fairly strong price correction followed, but it has been already absorbed by a new bullish impulse. It is worth noting that, despite very large volume, it is impossible to single out a new level or zone, since it was evenly spread throughout the movement.
Nevertheless, given the price came out of the consolidation up, a strong price growth on huge volume and the presence of a global uptrend, now it is worth considering exceptionally long positions.
Nevertheless, it is impossible to open purchases from the current level, as there is no good place for a stop loss. Therefore, it is worth waiting for the appearance of large volume on the market and the subsequent price growth after that. A stop loss should be placed below the beginning of a sharp bullish impulse. The potential of the deal is more than 120 points.
The pound broke out the level of resistance and after the fixation of the price above it, continued its growth. The movement was pretty abrupt, so it is a great bullish signal. Volume was large, but it was spread across the move, so that we can’t highlight any new volume level.
Anyway, given such a growth and the presence of the uptrend, we should give preference to long positions. We can enter the market after a smooth downward correction of the price to get a better entry point. A stop loss should be set below the yesterday’s minimum 1.3035. A potential of the deal is more than 150 pips.
The downtrend for the Yen continues as the price was and is falling down sharply and on large volume. Also we need to point out the new resistance 108.75 – 108.89, in which large volume is concentrated + the price started its sharp growth from this level. Given all these facts we should consider only short positions.
We can open short positions after a smooth upward correction in order to obtain an acceptable entry point. A stop loss should be placed above the resistance. A potential of the deal is more than 120 pips.
The pair continued falling and broke down the level of support, which is a good bearish signal. The breakdown move was smooth and on average volume, so we can’t point out any new volume level or zone. Anyway, short positions should be in priority.
We can enter the market after an appearance of the bearish impulse on increased volume, so we can place our stop loss above the beginning of the move. A potential of the deal is 100+ pips.
The Australian dollar has broken out the resistance and continued growing, so we can conclude that uptrend for this currency pair continues. Also we need to point out the new support level 0.8017 – 0.8028, where large volume is concentrated.
Given all the factors above, we should give preference to long positions. We can enter the market after a smooth downward correction to obtain a better entry point and risk/profit ratio. A stop loss should be placed below the support. A potential of the move is more than 70 pips.
The uptrend for gold continues as the price broke out the resistance/upper boundary of the consolidation on large volume and continued its growth. The move was sharp and confident which only strengthens its value.
Beside it we need to highlight the new support level 1340.40 – 1243.20, which contains large volume and it has pushed the price further up.
That’s why we should deliberate only long positions for gold. We can enter the market after a smooth downward correction to get an acceptable entry point. A stop loss should be placed below the level of support. A potential of the deal is more than 150 pips.
The sentiment: this indicator confirms all our scenarios, so it is a great signal for active trading.
The bottom line: the situation on the market is pretty good as all instruments have potentially good scenarios. That’s why we wait for good entry point according to our plan and then we should enter the market.