Ransquawk

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 continues to decline, which was triggered by an unsuccessful attempt to break the 1.2500 level. Currently, the pair has reached the support from the monthly chart and we are watching the attempt to defend it. From a wave point of view, the fall from the top is fourth wave. There is no more subwaves to create an impulse. So we should see another attack on the last low. If such an impulse arises, it should be a 1A wave and one should expect continuation of the southward movement after correction in the form of 2B wave. This wave would be the right arm of the head and shoulders formation, which can be created in the near future.

The sentiment slowly begins to change. For some time it has been losing long positions and shorts are growing. You will be able to play short and play along with the 3C wave.

However, to consider opening a position the pair should beat the Kijun line on the daily chart. Only its defeating and re-test will allow you to open positions. The target for such move may be the Senkou Span A.


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Pair GBP/USD similar to the EUR/USD, continues to decline after a failed double attack on the resistance zone. The pair was closed between two levels. An Inside Bar was created, from which we watched the attempt to break out last week. The attempt failed and a Fakey formation was formed. Until now without consequences. If the currently tested support is defended, we should see a move towards the level of 1.4000.

The sentiment slowly starts to favor declines. Short positions are growing. You will be able to look for a short.

Unlike the EUR/USD pair, the GBP/USD pair managed to beat the Kijun line. The Tenkan line begins to fall slowly. You can count on deepening falls and moving towards a key support zone.

USDJPY – pair where nothing has happened recently. Once again, the price tries to overcome the support zone. However, the zone is heavily defended and every now and then we watch attempts to move up. The entire last drop can be considered a five. If it is the fifth ending in the last wave of declines, you can expect a greater recovery.

The sentiment almost does not change. We still have a huge advantage of the longs. It is true that in recent times shorts have been growing, which allows you to open a short position, but technically there is no such option, that is why I stay aside.

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