“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 reacted to the local support zone. From this moment, we are seeing increases that have reached the supply zone. Its defeat will allow a move towards level 1.1860 where the key resistance zone begins. Such movement can take place within the right arm of the potential formation of the head with the arms. However, if the pair rejects the currently tested level and overcomes the last low, we will have a bearish five, which should have its continuation in the 3C wave.
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GBP/USD is located within Inside Bar, which was created on the weekly chart. Slowly, price approaches its lower limit, which is the upper range of the last consolidation. This is a strong support and if it is rejected, we should see continuation of the move towards the last highs. However, its defeating will be a very strong signal to sell. The weekly chart will create a false breakout formation, which should lead to a trend line test.
USD/JPY is still above the support zone. Currently, the pair is trying to start a correction, and test of the mentioned zone is possible. Only defeating it can lead to a greater correction, which can reach the internal support line.