“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.
I wrote recently about the possibility of ending the last wave of growth and creation of a simple correction. None of this happened. EUR/USD pair with a strong momentum overcame the key resistance zone and the second of the outlined scenarios is implemented. The one with the system 1212. This means that the pair is in the third wave of the third wave and if it overcomes the upper channel limit, the increases should be continued.
Despite such strong increases, the number of short positions increases all the time and longs decrease.
Of course, such a system did not allow looking for a long trade, even the layout on the Ichimoku chart was very good for this. We see, breakout up from a bullish cloud, a golden cross on the Kijun and Tenkan lines. The Chikou line is above the price.
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On GBP/USD we have a very similar situation as on EUR/USD. The pair, after rejecting support and creating formation of Fakey, defeated the key resistance zone with a strong move. The gap from 2016 was closed. The pair should continue to grow in the direction of the next resistance, which is around 1.3850.
On the weekly chart with the Ichimoku indicator we can see that the pair may head towards the upper limitation of the cloud, in the direction of Senkou Span B. It is flat, so it can attract price to this level. The problem is the Kijun line on the monthly chart, with which the pair fights.
The sentiment is similar to that from EUR/USD. The entire increase was used to open short positions or averaging already owned ones. Also here, I couldn’t open a position.
USD/JPY is fighting with the key resistance zone. If this drop is to be only a C wave in the correction of the growth impulse, then in the near future an attempt of upward movement should be expected. However, if the pair definitely defeats the tested zone, the second scenario can be taken into account, ie the one with the third wave and the movement towards the low.
The only pair that did not signal to enter the position and sentiment did not filter this entry. Also here it is in opposition to the movement of the price and there is nothing else but to wait patiently for his change.