“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 remains in consolidation between two levels. Yesterday’s attempt to break down from Inside Bara failed. The pair reached support and a demand reaction appeared. If it is to be the wave 4 of the last wave of growth, it should be quite extensive, and for now it looks like a correction before continuing growth based on the third wave.
The sentiment becomes neutral and typical for lateral movement. You can search a long position, so I am waiting for a appropriate setup on the H4 chart.
The current consolidation can take a form of a triangle or a straight line correction. The pair breached yesterday Kijun and Tenkan lines, but they are bearish. I am expecting another downward movement towards Senkou Span A and I will be looking for a position there.
The partner of “Search, Analyse, Trade” series is a Dukascopy Europe broker who gives its customers access to ECN accounts in different currencies.
Trade on Forex, indices and commodities thanks to Swiss FX & CFD Marketplace. Open free trading account right now.
On GBP/USD we have a similar situation to that on EUR/USD. Here, the pair also tried to break down from Inside Bar. Breakout failed and a Fakey formation was formed. It can not be ruled out that it will lead to a re-test of the resistance zone and the upper limit of Inside Bar.
As we can see on the weekly chart, the pair reacted perfectly to the Senkou Span B line, which attracted the price. On the daily chart, pair is currently defending the Tenkan line and there is a chance to continue growth. On the H4 chart, the layout is the same as on the EUR/USD pair.
Since the sentiment is neutral, I am waiting for the price to reach the cloud and its rejection or golden cross.
On USD/JPY, nothing special happens. The pair stays in Inside Bar on support. If the entire downward movement about which I wrote last week is to be a simple correction, then the support will be overcome and in the near future we will see the test of the last low.
A bit more happens on the H4 chart, where the pair twice rejected the Kijun line. This may mean the beginning of a continuation of the declines or sideways movement.
The sentiment has not changed since yesterday and remains “hostile” to the short. Despite the fact that a three-line signal may appear on the Ichimoku chart, I have to ignore it.
