“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
EUR/USD reacted last week to the resistance zone. This area has been rejected by a Pin Bar seen on chart H8. Still, all the scenarios presented recently in my last analysis are still possible. We can see both the upward movement within the 3C wave as well as the beginning of the next downward wave. Moving upward should result in re-test of the supply zone. Its defeat is likely to negate the formation of the H&S and the pair will return to the bullish trend. Continuation of declines should lead to H&S neck line test and its breaking and move towards 1.1450 level.
I abstain from opening the position unless the pair will reject the supply zone or breaks the neck line.
GBP/USD
Just like on EUR/USD here too not much is going on. The pair reached on Friday local support zone. We see a response of the demand that led to the creation of a Pin Bar. This may be the beginning of the wave 3C. If this is the case, then we should see an attack on the recently rejected zone of resistance. Its defeating should lead to a test of 1.3340.
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Here also I hold back from opening positions until the breakout of the consolidation and determining the direction.
USD/JPY
USD/JPY opened up with a bullish gap so that the resistance zone in the form of the last high was defeated. As the pair reached an important supply zone, corrections and attempts to close the gap could be expected. Re-test of the zone, will be an opportunity to find the position consistent with the trend and the last momentum. It is also possible to attack the upper limit of the currently tested resistance zone. If such an attack succeeds, the path to higher levels will be opened. Rejecting the level and re-testing the upper gap limit will be another opportunity to look for a long position.
