“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.
EURUSD stopped last week on the supply zone and internal resistance line extended lows on a weekly chart. A Pin Bar was created. Currently, thepair remains locked in an Inside Bar. From the wave point of view, the pair remains in the third wave of the recent upward wave and one can expect a correction in the area of the recently defeated key support zone.
The partner of “Search, Analyse, Trade” series is a Dukascopy Europe broker who gives its customers access to ECN accounts in different currencies.
Trade on Forex, indices and commodities thanks to Swiss FX & CFD Marketplace. Open free trading account right now.
The situation on GBP/USD pair looks very similar. The first attempt to attack the resistance zone ended with a strong bearish candle and an Inside Bar. The pair is also in the third wave and the upward movement should have its continuation. If we look at the graph with the Ichimoku indicator, we will see that the pair is approaching the Tenkan line and should test it in the near future. It should be noted that the Kijun line deviated from the price and a larger correction may be made in its direction. Such a correction should be the fourth wave of the last wave of growth and after its completion we should see another attempt to attack the recently rejected resistance zone.
USD/JPY reached the resistance. At the moment, the pair is trying to draw an upward correction and begins to move in the Inside Bar. As I wrote last week, the pair should be in a downward wave C. If so, in the near future we should see the attempt to break the tested zone, and attack on the last low.