Ransquawk

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 didn’t manage to defeat the key resistance zone. PinBar was created on the daily chart, which may suggest a larger correction, or at least a re-test of the internal support line. If it is defeated, we should see a test of the lower limit of the growth channel and the level of 1.1940. From the Elliott Wave Strategy point of view, the last wave of growth can be an impulse and the fifth subwave is missing. It may also be a three and then we will see a test of said level of support and another wave of growth.

The sentiment is slowly changing. We see a slow increase in long positions and reduction of shorts. Such layout allows us to look for a long.

If we look at the graph with the Ichimoku indicator we will see that the pair is between Kijun and Tenkan lines. If the graph is able to go beyond the Tenkan line, a three-line signal will be created and you can open the position. If the Kijun line is defeated, we should see a major correction towards the Senkou Span A line, i.e. the upper limit of the cloud.


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Also GBP/USD did not manage to stay above support. The pair rejected it creating a Pin Bar and is now just below it. This may suggest a desire to test the accelerated trend line.

On the Ichimoku chart, we see that the pair was under the Kijun line and is currently testing the line from below. If the pair does not come back above the line, we can expect a decrease towards the cloud.

From yesterday the sentiment changed. We have a very large reduction in short positions and an equally rapid increase in long positions. Similarly to EUR/USD pair, you can also look for longs here. If the pair defeats the Kijun line and is over Tenkan, a three-line signal will be created and the long position will be opened.

Nothing interesting happens on USD/JPY. The pair is constantly fighting to maintain an internal support line. Yesterday’s demand reaction reached the local resistance zone and is just trying to reject it. If this happens, then we should see the next test of the line.

The sentiment on this pair also changes and falls under declines. Until the support line is maintained, I remain on the side.

 

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