“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 continues to move up after the local support zone has been rejected. The pair beat the resistance level yesterday at around 1.1610. In the near future, we should see once again a test of the key supply zone and trend line. Their rejection can lead to further declines. However, their defeat should complete the straight correction and lead to another wave of growth.
The sentiment is in favour of the first scenario, so any attempt to reject these levels will be an opportunity to trade according with the H&S formation.
GBP/USD remains within the Inside Bar from weekly chart and another IB was created. Once again the pair managed to defend the trend line and support zone. The strong demand candle that has recently formed may have its continuation. Breaking from the daily chart formation should lead to another test of a key resistance zone that is around 1.33100. On the other hand, breaking downside and crossing of the trend line will result in a move towards the 1.2800 level.
The sentiment remains neutral. I’m waiting with opening a position until there is a breakout thru the bottom of the consolidation or move towards the upper limit of the Inside Bar from the weekly chart and its rejection.
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The rejection of the key resistance zone on the pair USD/JPY has its continuation. The pair reached the local resistance zone and tried to reject it. I expect one more test of this area. If it succeeds, there will be a chance to play long. Its overcoming should lead to a movement towards the level of 111,800.
