“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 pair of EUR/USD continues to be just below the supply zone, which is the right shoulder for the hypothetical H&S formation. The pair is missing one of the wave to finish the growing fifth, so we should see an attempt to attack the resistance. Only after the zone is rejected and corrected we will be able to determine if we are dealing with the first growth wave or the C wave of irregular correction.
The sentiment continues to support short positions. Actually I do not see a good setup to open the position, so we have to wait for another attack on the zone and completing of the growth impulse.
GBPUSD
GBPUSD – just like on the EUR/USD also here we see the fight with resistance zone. Last growth candle is a strong Pin Bar and grows the chance to beat the zone and continue the rebound. However, on the H4 graph, the whole increase from the bottom may also be the end of a straight correction and be a wave A of a larger correction structure.
The sentiment points on advantage of long positions. But I will wait to see end of the zone battle. Its defeat and re-test from the top will of course be the opportunity to go long.
USDJPY
On pair USD/JPY was created another Inside Bar just above the support zone. Breaking the bottom of it should lead to more downward movement. The defense and creation of Fakey formation will allow us to go long and perhaps complete the consolidation, which has been lasting for almost two weeks.
