“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
Correction on EUR/USD has reached recently broken support that is now a resistance. It took the form of a simple correction for this moment. Rejection of the level should lead to the completion of the 4th intermediate wave 1/3/C wave and a move towards level 1.1490. If the pair reaches this spot, we will be able to say about the 1/3/C wave ending and expect to correct it and continue the declines within the H&S formation. If this is the end of wave C, then we will see at least a temporary return to gains in wave 1/B.
The sentiment has not changed a lot since yesterday and allows to open shorts. The rejection of the currently tested resistance zone will allow you to look for positions.
GBP/USD
A bit more happens on GBP/USD. Pair rejected yesterday the resistance zone and strongly fell to the trend line that is currently tested. Dealing with it and the support zone should result in a deeper decline and a move towards 1.2850. The defense of the zones, will lengthen the consolidation and the sideways movement in the Inside Bar, which was created on a weekly chart.
On the sentiment chart we see a sharp increase in short positions and a continuous increase in long. By the time the trend line is broken, and thus the outbreak of Inside Bar, the pair is not suitable for trading. That’s why I stay on the side.
USD/JPY
USD/JPY – pair for the time being follows the scenario outlined in my last analysis. On the D1 as well as H4 was created a Pin Bar that denied the local support zone. It seems that the pair will make another attempt to force the tested barrier repeatedly tested.
On sentiment we see that all growth is used to open short positions. Either small players are right and the zone will be discarded, or short positions will be used as extra fuel after the zone is broken. I remain on the side, due to the momentum.
