“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.
EUR/USD reached the bottom of the growth channel yesterday. The level has been defended and the pair is currently above the resistance zone. Yesterday’s upward move is the fifth and if it is not, and may be a C wave of irregular correction of the last declining wave, then we should see its continuation and attack on the tops of early September. However, if it is actually the C wave of an irregular adjustment, the 1.1800 test will be very likely.
The sentiment has not changed since yesterday. Still we have a lot of shorts. This does not allow us to look for a position at current levels, so I stay on the side.
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GBP/USD continues to move up after breaking from consolidation. The movement is so strong that the last high test seems to be certain. If the pair succeeds in permanently overcoming this level, it will simultaneously close the bearish gap from June last year which will open the way towards level 1.3850.It looks like the upward movement currently being watched is used to open short positions.
Momentum is strong, so I also stay aside. A possible correction may change this layout, but this is not likely to occur and only breaking the high can change the attitude of the players and allow to open the position while possible re-test.
The situation we have on USD/JPY pair seems very interesting. The pair defeated the inner lines drawn on the lows with a strong candle and it seems that soon we will see a test of the resistance zone, which is around 113,000. Its defeat opens the way to the attack on the last high.
The sentiment has changed to a small extent. There were a few shorts. Also on this pair I can not open a position. It is a pity because the re-test of the mentioned line would be a very good opportunity for that. It remains to wait for the pair to reach 113,000 and reject it strongly.
