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.



The gains on the EUR/USD after breaking out of the downward channel reached a very important resistance zone. Zone was denied by Pin Bar. However, from the waves point of view, the Pin Bar ended up only with the third wave, so the zone should be tested at least once. If the wave is completed, you can mark it as 1A and expect its continuation. Possible correction will be the right arm of the inverted head and shoulders formation and its implementation should lead to the movement towards the last high.

The sentiment begins to change. We see a sudden drop in short positions and a slow rise in long positions. Any corrections to the nearest support will be available to play under the 3C wave.

Still nothing happens on the GBP/USD pair. The pair remains closed between two zones and inside the Inside Bar. On the lower TF we see tugging movements up and down and each of them is a three. Still, I think we should see another attempt to break the bottom line of consolidation. Inside Bar’s mother candle is an impulse, so he should have his follow-up. The current triple movements fit into its correction.

Sentiment remains neutral. As I have written many times, with the position on this pair I abstain until the moment of breaking out of the consolidation.

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USD/JPY tried to break out down from the Inside Bar and thus overcome the important support zone. So far the trial has failed and the zone is defended. If the pair returns to the interior of the Inside Bar, we can call it a false breakout and count on the move to the last high. Then the last wave of growth will be the first, and the last decline a correction. Overcoming the support negates such a scenario and should lead to a movement towards the level of 111,800.

The sentiment remains neutral and does not allow you to open the position. But if Fakey’s formation is going to start, I’ll search a long position.


 

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