“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.
At the end of last week EUR/USD continued the rebound which was started to defend the local support zone. There was a bullish five, which stopped at the last high. Two scenarios are possible. In the first, the impulse is marked as a wave 1A and after correction to the extending range of 50-61.8 we will see another increase in the wave 3C. In the second, the resulting fifth is a wave of irregular C correction. This means that the currently tested zone will be strongly rejected and we will see continuation of the declines towards the last low and its overcoming.
The sentiment is neutral. This does not allow us to open a position.
However, if the pair rejects the resistance zone and starts to gain short positions, I will also be looking for one.
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GBP/USD remains inside the Inside Bar from a weekly chart. The last growth impulse that emerged after the rejection of the demand zone was continued. There is a three-wave structure that does not tell us anything. If this is a simple correction abc then we should see once again the test of the last low and the accelerated trend line. If the drop we see from Friday is a wave of irregular correction, then it is quite possible to move towards the upper limit of consolidation.
As with the EUR/USD also here the sentiment is neutral. The level at which the graph is currently is not suitable for me, so I decided to refrain from decision until a breakout from the consolidation.
USD/JPY has rejected the support zone last week, which prevents the pair before bigger losses. There was a bullish three, which reached the local resistance. Its rejection should lead to another test of this support zone. However, if the pair defeats the resistance, the move towards the top will become quite possible.