“Search, Analyse, Trade” is a series of Price Action and Elliott Waves analyses. Its detailed step-by-step description can be found over here. I invite you to today’s review of selected currency pairs and potential trading opportunities. The analyses are based on the Dukascopy sentiment that you can get here.
The EUR/USD is still in consolidation just below the resistance zone. On the H4 graph, we see a completed b wave of a straight correction or a triangle.
On the H4 graph with the Ichimoku indicator we see that the pair is slowly approaching the Senkou Span A line. This is also vicinity of the Tenkan line from the daily graph, so possible the price will react to them and begin to grow. The Chikou line has just entered the price, which is characteristic for lateral movement.
The sentiment remains neutral. We have not been in a dynamic position for a long time, so you can look for a long. The creation of the golden cross, or the rejection of the Senkou Span A line will be an opportunity.
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GBP/USD is still trying to climb up on the recently formed Fakey formation. This is the result of a response to support. Movement towards the upper limit of Inside Bar, and thus the key resistance is possible, but the resulting correction looks unfinished. It seems that we will remain for some time inside consolidation.
Similarly as for EUR/USD also here the price reached the area around the Senkou Span line A. A gold cross above the cloud occured, but the Chikou line remains under the price which can act as a filter (no must). The arrangement of the Kijun and Tenakan lines is horizontal, so you need a stronger upward movement to take the position.
The sentiment that has remained neutral since yesterday alows us to open a position. After a sudden drop in long positions a few days ago, currently no new additions are visible.
The USD/JPY remains in Inside Bar just above the support line. Breaking out from it should show the direction for the next days. Breaking the bottom should lead to test of support – level of last low and to the scenario with the wave C of the straight correction.
On the H4 chart with the Ichimoku indicator we can see that the graph defeated the Kijun line, which may mean a major correction at least to the Senkou Span A line, ie the lower limit of downward clouds. Any reflection from it, or setting of a cross under the cloud, will be an opportunity to play on the continuation of the declines.
From few days on the sentiment is changing. The number of long positions compared to short ones is enormous on this pair, but short positions are slowly arriving. This gives you the opportunity to play when the appropriate setup appears.
