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 after rejecting the key resistance zone and breaking down from Inside Bar reached support created by the last high. At the lower TF this move looks like an impulse and should have its continuation. Because we are on support, we will see an attempt to defend him and move towards the defeated inner line. This would be a 2B wave movement. After this, I expect another downward wave and a test of at least an accelerated trend line.

On the sentiment chart, we can see a further rise in long positions. It encourages to open longs, but the appropriate setup is still far away, that’s why I stay on the side

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 is still in Inside Bar, which was created on the support zone. The recent upturn wave is still unfinished and the current consolidation may be its fourth wave. If this is the case, then after the end we should see another attempt to attack the key resistance zone. Consolidation can be of course extended and take the form of a straight correction or a triangle, and thus test the trend line. However, this line should not be defeated. If we look at the H4 chart with the Ichimoku indicator, we will see that the moment for opening a possible position is quite far away. The price after crossing the Kijun line reached the upper limit of the cloud. Kijun and Tenkan lines indicate consolidation. The same with the Chikou line, which is between the price graph.

Stronger upward movement should arrange the lines accordingly, and because the sentiment allows us to open longs, I will also look for it.

USD /JPY has not been able to maintain the support in the form of an internal line. The pair has broken out of consolidation and is slowly approaching the next support. Its defeat should lead to the test of the last low. If, however, the pair reacts positively to the demand zone, we can see an attempt to grow towards the defeated line or even return to the interior of the correction structure.

The sentiment is strongly bullish. We see a strong increase or averaging of longs, and a decrease in shorts. I’m not currently considering opening any position on this pair.




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