“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 did not manage to maintain support at 1.1800 and the pair reached another support. A Pin Bar was created and it is possible that we will see attempt to re-test 1,1850. As we can see on the daily chart, such movement could be the right arm of the head and shoulders formation and its implementation would bring the pair close to the last low.
On the sentiment graph we see a continuous increase in long positions, so if 1.1800 is defeated, I will look for a long position.
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GBP/USD reached the upper limit of the last consolidation. This is the key zone. Overcoming it will lead to the formation of Fakey on the weekly chart and the re-test of the trend line will become very likely. Currently, the pair is trying to defend support and if we succeed, we should see a move towards the last highs.
Recently, we have a slight change on the sentiment chart. The longs start to gain with simultaneous reduction of short positions. Such situation allows us to search for a long position, so successful defense of the currently tested support will allow us to open longs.
USD/JPY has managed to overcome the resistance zone around the level of 113,000. The way to the test of last peaks has been made. If the pair manages to maintain the level they have defeated, such a scenario is very likely.
Unfortunately, the sentiment chart does not allow for opening longs. We see a very strong increase in short positions and a reduction in long positions, which is why I am now on the sidelines.
