After the sharp growth of the price, the euro fell down and totally absorbed the previous move up. Unfortunately, the pair moved on average volume, so it’s difficult to point out fresh levels or volumes.
So overall, EUR/USD is still trading in the consolidation and it’s very tough to predict further direction of the price. In such a situation, we should stay out of the market and wait for the appearance of large volume and local trend on the market.
The very same situation for the pound as the price tested the resistance and rebounded back, that’s why this level is not actual anymore. Volume on the market was pretty small yesterday, so we can’t highlight any new levels or zones.
The whole situation remains difficult – the pair is trading in the global consolidation. So we can’t trade the instrument until either the appearance of strong fresh levels or the breakout of the boundaries of the consolidation.
Now it is better to stay out of the market.
USD/JPY continued growing and breakout the upper boundary of the consolidation. The move was on increased volume and sharp, so it is a good signal for continuation of the local uptrend and, consequently, opening long positions.
We can enter the market either from the current level or after the small and smooth correction of the price down (preferable scenario). A stop loss should be placed below the level 111.34. A potential of the growth is around 100 pips.
This pair is still trading in the consolidation between two volume levels: the support 1.3167 – 1.3191 and the resistance 1.3280 – 1.3305.
So the previous scenario remains the same: we can trade USD/CAD only after the breakout of the boundaries of the consolidation.
Breakouts should be supported by increased volume. Stop losses should be placed below/above volume breakout bars. A potential of the growth is 110 pips, for the fall – 100 pips.
The same situation is for AUD/USD as the price is trading in the middle of the consolidation between two strong levels: the support 0.7523 – 0.7540 and resistance 0.7629.
That’s why we can trade this instrument only after the breakout of the consolidation.
Moves should be supported by increased volume. Stop losses should be placed below/above volume breakout bars. The potential of the growth is around 90 pips, for the fall – 70 pips.
Gold still could not break through the resistance and on very large volume fell down. The fall of the price was sharp and strong. Also it is worth noting the fresh resistance level, which was formed during the bearish impulse – 1242.90 – 1245.20.
In this level, fairly large volume is concentrated + this is the previous global minimum. In addition, the price is testing this mark now.
As can be seen from the volume chart, a large accumulation of volume is concentrated at the current mark, so the resistance 1242.90 – 1245.20 is an important level for gold trading.
Given the strong fall of the price on large volume and the presence of the resistance, it is worth considering short positions. We can enter the market after the resumption of the price fall on increased volume from the resistance level. The move should be sharp. A stop loss should be placed a little above the level 1245.20. The potential of the deal is more than 150 points.
The sentiment: this indicator confirms our deal for the yen. The situation for gold is 50/50, but all technical factors are for opening short positions. For all other instruments the sentiment does not matter as they are trading in consolidations.
The bottom line: the most interesting instruments for trading right now are USD/JPY and XAU/USD.