“Search, Analyse, Trade” is a series of analyses for Price Action and Elliott Waves. 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.
There is still little to do on the EUR/USD. The pair is trapped between the zones. The pair tested yesterday 61.8 percent correction of the last growth wave. There was a demand response that stopped on the SR line. The two scenarios I outlined in the last posts are equally likely and we have to wait for a decisive move in some direction and break out of consolidation. Possible upward movement will be a continuation of the last wave in the 3C wave and the test of the supply zone. The downward movement is a scenario with a C irregular correction wave and a test of the neckline of the H&S formation.
The sentiment is in favor of the falls, but the current level is not attractive to open position, so I am waiting for a test of one of the zones.
The declines we last saw on the pair GBP/USD has taken a form of an impulse. If there are no surprises and it does not turn out to be an irregular C correction then we should see its continuation. The increase observed since yesterday has reached the lower limit of the resistance zone and should be the wave 2B. Rejection of the zone should result in movement towards the last low and then the trend line. After the correction, we will see upward movement and a test of 1.3340.
The sentiment is not in favor of any of the sides, therefore the rejection of the currently tested zone will allow to play short with the goal wave 3C.
USD/JPY very nicely done the scenario outlined in yesterday’s entry. After the support was rejected, the impulse was followed by a correction, which was a rallying correction. Yesterday we continue to see gains in 3C. In the near future we should see the attack on the last high. Its defeat seems very likely. If this happens, we will see a return to the upward trend and move towards 114.300.
