“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 opened today with a bearish gap near the trend line and the lower limitation of the support zone. There was a demand reaction and from the morning we have a slight upward movement and an attempt to close the gap. If the upward trend is maintained, we should see test of the last high. However, overcoming the support should lead to a move in direction of the level of 1.1800 where is a local support zone.
The sentiment does not change and we still have a lot of advantage of shorts. I am postponing opening of the position until pair overcome the mentioned level 1.1800 and with his re-test I will look for a short.
Pair GBP/USD approached last week’s resistance zone, which is the last high. As the pair is in the third wave, I expect another upward movement and test of the mentioned zone. The currently seen correction forms Inside Bar and breaking it thru the top will be the confirmation of beginning of the fifth wave. Only descent below the upper limit of the last consolidation will negate such a scenario.
Nothing special happens with sentiment. We have a gentle increase in long positions and less shorts. With the position I refrain to breakout from Inside Bar and breaking the last high or to re-test the upper limit of the last consolidation.
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USD/JPY welcomed us with a bullish price gap. Currently, the pair is testing an important resistance zone. Her defeating will open the way to the last highs and will negate bearish variant. Rejection of the zone should lead to closing the gap and testing the internal support line. Upward movement is used to open the shorts. Theoretically, the rejection of the tested resistance zone should be an opportunity for the short. However, I am holding back because of the last momentum.
