“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 pair defeated the local support zone. In the case of a possible deepening of the declines, I expected B wave correction and only than overcoming the support. The pair, however, had other plans and the level was defeated yesterday. Price reached the demand zone on the monthly chart. Its overcoming can lead to a move towards the level of 1.2000. However, I am counting on the expansion of the sideways correction and the emergence of the fourth wave and the attempt of another attack on the highs.
On the Ichimoku chart, we can see that the pair is approaching the Kijun line. At this level, there is also the abolition of 38.2 percent of the third wave and I expect on the demand response in these regions. Defeating the Kijun line may mean a deepening of declines and move to around 1.2000.
The sentiment changes direction and the entire drop is used to open long positions. However, you will have to wait for a proper setup. In the h4 chart, the pair is located next to the Senkou Span B line. It’s a bullish cloud.
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The GBP/USD has beaten the support and reached the next one. There was even a Pin Bar, which suggested a bigger rebound, but the supply has come to the fore and now the pair is struggling with the 1.3860 level. This is an important level and we should see some demand activity here.
This level coincides with the Tenkan line on a weekly chart which strengthens its meaning. The breakout from Inside Bar, which was created should indicate the direction for the next days. Possible defense of the support should be the beginning of wave B of a larger correction structure. On the Ichimoku chart, the pair is testing the Kijun Line, which is a support. The Tenkan line slowly starts to move horizontally which may suggest that a reflection is coming. If so, then we should see the movement towards the defeated Tenkan line and it should be a B wave.
The sentiment remains without major changes. Since yesterday we see a slight increase in short positions. At this moment I am on the side and until the Kijun line on the daily chart is not defeated I am only interested in long positions.