“Search, Analyse, Trade” is a series of analyses for Price Action and Elliott Waves. 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 can be seen here.
EUR/USD
EUR/USD once again reached the support zone that it had defended few days ago. It is quite possible that from these levels we will see some bigger rebound. The whole decline from the top starts to lie under the simple correction pattern. If so, then we should watch the last, fifth wave of C wave. We must remember that we can deal with a larger correction structure, and the current drop may be wave A. However, the stronger response of demand from these levels plus the waveform at both variants can be an opportunity to find long positions. Overcoming the tested support will deny bullish scenario.
GBP/USD
GBP/USD after breaking down from Inside Bar reached an important demand zone. Its defeat will open the way towards 1.3130. Looking at the wave chart, as in the case of EUR/USD pair, we can expect greater demand and movement activity in the direction of recent support – lower limit of Inside Bar. This will be key level. Its overcoming will open the way to further growth or end with a larger correction wave B. On the other hand its rejection, may be the beginning of the fifth wave and the opportunity to play short.
USD/JPY
USD/JPY has rejected the support zone and from this moment we watch a rally. For few days all traffic has taken place inside the Inside Bara and has now reached its upper limit. If price breaks out thru the top, we should see continuation of the upward trend towards 114,300. Rejection of the level will mean return to consolidation or a beginning of a major downward movement. In this case, test of level 111.800 will be very likely.
