“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.
There is still nothing interesting happening on EUR/USD. Pair remains in consolidation while building the right arm of the head and shoulders formation. The last growth attempt has halted at 50 percent of the downward wave. On the H4 chart occurred a bearish pin bar rejecting level, and there is a hope that we will finally see at least continuation of the recent downward wave. This should lead to a test of the support zone and the neckline of the H&S formation.
The level of sentiment also reflects the stalemate on the pair. The price level and the attitude of the players do not encourage us to open a trade.
The GBP/USD performs the plan outlined in yesterday’s entry. Pair discarded the resistance zone by forming wave 2 and started declining. Currently, the pair is testing local support zone. Its overcoming should lead to a movement towards the trend line. Such a drop does not need to happen because wave 2 was a fifth finished with three and the current decline could be a wave c of irregular correction, ie, wave ii of growth wave. This layout should lead to increases in the direction of the multiple rejected supply area and prolong the consolidation. The key is the behaviour of price at the current levels.
The level of sentiment is in favor of the bullish scenario, but I remain aside and I wait for the move towards the most important zones.
The USD/JPY has rejected the local support zone and has started to test another important supply zone. Its defeat opens the way to higher price levels. If we look at the structure of the last rising wave, we will see that there is missing one intermediate wave. It should reach levels 114,300. Than layout will be finished. It may be both the wave of the first wave of 3C of all the movement which began in early September or the ending wave. In the first case we will see a move towards the highs from the end of last year. In the second a stronger correction or change in trend.
Sentiment level remains neutral. The opening level is also not playable, so I stay on the side.
