“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.
We are watching continuation of increases on the EUR/USD. The pair overcame the upper limit of the growth channel and reached the resistance. We have three growth candles behind us and it is possible that there will be some correction towards the channel line. If it is actually the third sub wave of the third wave of the last increase, then the price should not return to the interior of the channel.
The graph and sentiment go separate directions. Short positions are still growing. Admittedly, there has been a slight increase in longs, but still such a layout does not allow us to open positions. This amount of short positions can be a very good fuel for further increases.
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GBP/USD is maintained above the key support zone. If support is defended, bullish bias is in force. The next resistance zone is around 1.3850, so there is not much room for growth. If the pair succeeds in reaching this region, one should expect the supply side to be activated.
USD/JPY defeated yesterday’s support based on the recent low. We are currently watching the attempt to deny the break. If the pair comes back over support, we can treat it as completing of the ABC correction of the pulse wave and attempt to grow. However, if the pair rejects the current levels, the declines should last at least to finish off the wave C.
We can see on the graph with the Ichimoku applied, the pair went down from the rising cloud. The Kijun and Tenkan lines are arranged in bearish mode. The Chikou line was also under the price and the cloud. The Senkou Span B line is flat and attracts the price very nicely.
On the sentiment graph, the longs are still ahead, although from yesterday we can see that short positions are coming. It is a system in which we can look for a position. The rejection of the Senkou Span B line will be an opportunity for this.