“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.
Since yesterday we have seen declines on the EUR/USD. If it is a correction of recent increases, the pair is in the right place to finish it. Currently, the pair is testing internal support. If it can be defended, the way towards the high will be open. A drop below should lead to the test of the last low, ie to initiate the 3C wave.
Ichimoku chart clearly indicates consolidation. Tenkan and Kijun lines are laid flat and the price moves between them. The Chikou line has entered the price line which also indicates lateral movement. The same applies to the cloud, whose lines Senkou Span A and B move horizontally. It remains to wait for more dynamic move in some direction.
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GBP/USD is currently testing the trend line, which is slowly becoming more important. Probably the pair will pass the line sideways. The drop we see can be either the fifth wave of the C wave of the regular correction. After its completion, the correction should end or become a wave A of the larger structure or the pair moves in a triangle. In the second case, the wave d and e are missing to complete the structure.
On the Ichimoku chart, we see that the pair has broken out from the bearish cloud, which doesn’t mean a thing because the Kijun and Tenkan lines go flat and are arranged in reversed order. The Chikou line is above the price and the Senkou Span A line is growing. Only a proper arrangement of all lines will allow us to open the position. For now, we have a picture of a typical consolidation.
USD/JPY has defended a very important support zone. The consequence of the emerging Pin Bar may be today’s demand candle and movement towards the key supply zone. Only the break out from the box created will allow us to determine the direction in which the pair should move in the near future. On the H4 chart, we can see that the upward movement is the consequence of the five that emerged after the defense of support. Currently, the pair is in the 3C wave.
The move may be continued towards the Kijun line from the daily chart, i.e. the vicinity of the Senkou Span B line. Yesterday a weak buy signal appeared in the form of a cross and the entry of price into the cloud. The Chikou line is above the price line and is approaching Senkou Span A.