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. An Inside Bar was created from which we watched yesterday breaking down and overcoming the internal support line. The pair is currently located above the demand zone, which is set by the high from the end of November. Its overcoming should lead to a test of the lower limit of the growth channel. If, however, the pair forms an ending wave, it should move with threes. It is quite possible that the first two are behind us and the defence of the lower limit of the channel will be the beginning of the third. Another possibility, which seems quite probable, is creating B wave of the straight correction. In this case, the pair will break off from the channel and we will see drops in the vicinity of the last low within the C wave.


It attracts those willing to occupy long positions. Currently, in the graph with the Ichimoku indicator, there are no buy signals, that is why I stay on the side.


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GBP/USD remains inside Inside Bar just above the support zone. We are waiting for breakout. If we look at the graph in terms of waves, we will see that until the end of the last wave there is no sub-wave fifth. It is possible that we will see an attempt to break the Inside Bar within the fifth sub-wave, reject the key resistance zone and end the upward sequence. For now, the trend is upward, which is why I am interested only in buy signals.

The sentiment is disturbing here, because here we have an increase in short positions, but if there is a correction and an accelerated trend line test, it is possible that this layout will change.

USD/JPY has been closed between two lines. Yesterday, the pair rejected the upper limit of consolidation and the resistance zone and is now approaching the internal support line. The whole consolidation resembles a triangle and you have to wait for the exit in one direction. The last momentum was bullish, so I see a better chance of breaking the top. If it is a triangle, it slowly fills up. Currently, we should be in its e wave.

Sentiment is neutral and allows us to open any position, but there are no clear signals, so I hold back with the game until breaking out of consolidation.

 

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