“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 in a very strong move broke out from the downward channel. It seems that the pair finished ABC correction denying the Head & Shoulders formation. Growth is approaching the supply zone. Impulse slowly takes the form of five, so I marked it as a wave 1A. After correction, it should continue in wave 3C. The pair either returns to the trend, or the current move will be the beginning of the B wave of a larger correction structure.
All upward movement has been used to open short positions. Small players have decided to average their short positions which boosts growth. I am waiting until the downward correction occurs. I will try to play the 3C wave.
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Unlike the EUR/USD pair, the GBP/USD continues to move in consolidation between two levels. We are waiting for the move either toward its upper limit or for test of the trend line. It is only defeating one of these levels that should lead to more movement in the direction of the break out.The sentiment contributes to short positions. You can see increase in shorts and the drop in longs. I am waiting for a break out from the consolidation before opening a position. The current levels are not suitable for me.
USD/JPY is approaching the lower limit of the Inside Bar, which is also the upper limit of the support zone. Its overcoming should lead to a deeper decline and move towards 111,700. It is possible that a larger head and shoulders formation will occur. Rejecting the level will probably push the price to the last high. If the demand zone is defended and a suitable setup occurs, eg Fakey, I will look for a long position.