“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 is trying to break out from Inside Bar, which was created within the key resistance. If the pair breaks the top, it will automatically overcome the resistance and the way to higher levels will be opened. The next supply zone is around 1.2230. Earlier, however, the pair will have to cope with the upper limit of the growth channel. In these areas the equality of the A and C waves is falling if we treat the movement from the low as a wave three. Breaking the line will change the C wave in the third and we will have a growth impulse, which should bring the pair to at least the said level.
The closer to the high, the more bearish attitude we see in the sentiment chart. Yesterday’s sentiment allowed for opening longs. A buy signal was even created on the Ichimoku indicator in the form of three lines. Today, only observation is left.
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GBP/USD managed to defend the local support zone. The Inside Bar was created. If the pair manages to get out of it, the test of key resistance will be sure. We must remember that defeating this zone will be at the same time covering the gap created in 2016 and will open the way to the level of 1.3850.
Also in the case of this pair, the sentiment from yesterday has changed completely. We see more short positions and reduction of long ones. Because I started using Ichimoku to open the position, I need to wait while there is no clear signal.
USD/JPY managed to defend once again the internal support line. An Inside Bar was created and we are currently watching the attempt to break out from it. Ahead of the pair stands local resistance zone and the line connecting last highs. Overcoming them will allow move towards the key resistance zone. However, if the pair rejects these levels, it will be trapped in a triangle and we will see continuation of consolidation.