“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.
The EUR/USD pair reached upper limit of the support zone. Since yesterday we see an attempt to defense it. As I mentioned in yesterday’s post, the last downward wave that has occurred on this pair has been completed and you should expect more demand side activity. If we see growth in the near future, pair should move towards 1.1870. There is the upper limit of the supply zone and the broken trend line. Then the arm of a larger head and shoulders formation should be formed. Its implementation should result in a move towards 1.1450.
The sentiment cycle continues to remain neutral. We have increase of both long and short positions. If we see growth and the pair rejects the resistance level, there will be an opportunity to play short in line with bearish H&S formation.
GBPUSD
On the pair GBP/USD situation has not changed since yesterday. The pair continues to move in a downward channel. We now see an attempt to respond to the support zone and lower channel constraints. If the levels are defended, you should expect pair move towards 1.3320-40 where the supply zone is located. Overcoming support should lead to a movement towards another significant level, which is 150 pips lower. Like on EUR/USD also here the sentiment chart is neutral and we do not see advantage of either side.
USDJPY
As I mentioned yesterday, USD/JPY has reached the upper limit of Inside Bar, inside which the pair is moving for several days. Level was rejected. The pair again reached local support and the trend line led up on last highs. The only thing left is to pause trading on this pair and wait until the formation will be broken up ,or down. The re-test of the broken edge will be the opportunity to take a position consistent with the breakout.
