“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 after defeating the resistance last week, stays in consolidation for two days. If the observed increase is not the C wave of the irregular correction, i.e. the B wave of the last system, it seems quite possible to re-test the defeated resistance and continue the impulse towards the high. It would be a movement within the fifth wave of recent growth wave. However, if it is a B wave then we will see drops towards the last low.
On the daily chart of Ichimoku, the pair crossed the Kijun line which may suggest a willingness to continue to grow. On the H4 chart, the Kijun line from the daily chart is located near the flat line of Senkou Span B. This line can attract the price and become a nice place to look for a continuation of growth. The Kijun and Tenkan lines currently point to consolidation, but are generally bullish. Chiko’s line was also above the price and broke out from the cloud.
Sentiment, which has not changed for few days, allows us to play a long position. The amount of longs and shorts remains unchanged, and if it remains so until probable correction, you can play under the fifth wave.
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.
GBP/USD moves as part of what begins to look like a downward triangle. If in fact if it will be a triangle, then we would be in the wave d and for its filling is missing the wave e. Currently, the pair is right on the recently defeated resistance. Inside Bar was created. Breaking it from the top should lead to the ending of the wave d. If the pair rejects the line led over the highs, you can expect movement within the wave e.
On diagram D1 Ichimoku, the pair is in the cloud just over the downward line Tenkan. However, on the H4 chart, the pair entered the cloud. Tenkan and Kijun lines suggest consolidation. The Chikou line is above the price, but now it has become an Kijun line.
Sentiment by increasing short positions and reduction of longs suggests looking for a short position. If the pair does not break the top of the bearish cloud, I will also be looking for appropriate setup to open a short.
The USD/JPY once again has arrived and tries to reject a important support zone. Another Pin Bar was created. From the wave point of view, as I wrote about last time, the movement from the moment of rejecting the key resistance is a four and to the end it lacks the fifth subwave. Therefore, another test of the level is very possible.
On the Ichimoku chart, we can see that the pair remains in consolidation between Kijun and Tenkan lines. The cloud is expanding more and more which may suggest longer lateral movement. The overall picture of the pair is bearish and the pair should break-out from the current consolidation and at least once again test the last low.
The sentiment is also bearish, so a possible signal, eg three lines, can be used to take a short position.
