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 crossed a very important resistance zone around 1.1850. The way to attack on the last peaks in early September was opened. The last wave of growth also looks unfinished and if it is a 3C wave it should be seen in the near future. Any correction can be used to find the position consistent with the last strong momentum and count on the realization of reversed Head & shoulders formation.

Sentiment is unchanged from Friday. Still we see the advantage of short positions. If the layout starts to change in favor of longs, the re-test of the neckline of the H&S formation will be used to find the position.

Still nothing interesting happens on GBP/USD. The pair is currently testing a key resistance zone. This is also the upper limit for a large Inside Bar from the weekly chart. Defeating the zone will open the way to continue growth towards the last high. However, if pair again rejects the zone, we should expect declines in direction of lower band of consolidation. As a result, the ABC correction will be completed and either a larger correctional structure will be seen, or a 3C drop will occur, a continuation of the movement which began at the end of September.

Also on this pair the sentiment with no major changes. It remains neutral, so I will consider the rejected zone to look for a short position.

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USD/JPY has reached the lately broken important support zone, now resistance. Initially, the couple rejected it and we can expect continuation of the downturn towards 110,650. The downward wave is clearly not complete so the downward version is the preferred one.

In sentiment some changes seen, more positions are in line with the last momentum. If the pair rejects the currently tested resistance zone, a short position will be considered.

 

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