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 did not manage to defeat the key resistance zone. On Friday, we had an attempt to leave the Inside Bar, which failed and was created a Fakey formation. Currently, the pair is just below the supply zone. We can see move to the 1.1960 level and its re-test in the near future. If we look at the H4 chart with the Ichimoku indicator, we will see that the pair defeated the Kijun line and this may mean a larger correction in to the vicinity of the said level and the Senkou Span A line, ie the upper cloud limit.

The sentiment is neutral. We see a drop in both long and short positions. This allows us to open a long position and if the pair bounces from the cloud and goes above the Kijun and Tenkan lines, I will open a long position.

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GBP/USD remains just above the support set by the last peak. Here, too, we have an Inside Bar and we are waiting for the breakout, which should show the direction for the next days. Bottom breaking will mean an accelerated trend line test. Such movement may be the fourth wave of the last wave of growth and after its completion we should see the attack on the key supply zone. The movement inside the Inside Bar can also drag in time and thus create a fourth wave. In this case the support over which the pair is currently located will be defeated.

In the sentiment graph we see a strong reduction in both short and long positions. This allows us to open any position. However, the Ichimoku indicator currently does not give any setups, so I stay on the side.

USD/JPY tries to overcome the local resistance zone. This failed on Friday. A candle with an upper wick was created, but today we can see tnext attempt to get over the zone. If this time the pair will deal with the resistance, we should see continuation of the upward momentum initiated last week and the move towards the key supply zone.

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