“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 rebounded from the internal S/R line and moved down, thus canceling the correction I planned. Currently, the pair is under the line extended on the lows. If it is the beginning of the 3C wave, in the near future the pair should test the vicinity of 1.2190. Another option is that the pair will reach only the level of 1.2240 and the end of the bearish three. Such a solution will prolong the consolidation and expand the corrective structure. The third option to consider is the one in which the last sub-wave is a wave of irregular correction. In this case, the pair should once again test the internal S/R line and only after its rejection move to the heights already under the correct 3C wave.
On the Ichimoku chart we can see that the pair is still moving in the cloud. The last re-test of the Kijun flat line led to its rejection and since then we have been continuing the declines. If it really is to be the C wave of the whole correction system, then the target level for the supply should be the Senkou Span B line.
The sentiment graph is still balanced. As in the chart, it is better to wait for a stronger move to occupy the position, which will allow you to determine the right direction.
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Even less is happening on the GBP/USD. The pair moves fourth session like on stairs inside the support zone. Candles that are formed have upper shadows and now the pair is testing the upper limit of the said zone. Its rejection should lead to an accelerated trend line test. Such movement can be considered as the C wave in the straight correction of the last growth impulse. Overcoming the line can lead to a test of the key support zone. The current movement we are watching from the beginning of February is very similar to what we watched from September to December last year. A Repeat?
There is nothing interesting on Ichimoku chart. The pair remains closed between the flat lines Kijun and Tenkan. It seems that the pair should move towards the falling Senkou Span A and Kijun line and try to finish the straightforward correction there. The Chikou line is currently fighting Kijun and if it rebounds such a scenario can take place.
The sentiment is more and more inclined towards declines and confirms possible drops. Unfortunately,currently there is no possibility to open a position, that’s why I stand aside.
USD/JPY has tested the upper limit of the support zone and with a strong candle has moved up creating the right arm of the hypothetical head and shoulders formation. Slowly, the pair approaches the neckline and if it is overcome it will be possible to move over the key resistance zone. If the zone is rejected again, it will probably prolong the lateral movement and expand the corrective structure.
On the Ichimoku chart we can see that the pair after the test from the top of the Tenkan line found itself above Kijun and this may promise a continuation of increases. Very little is missing to intersect these lines and create a cross under the cloud, which is a weak signal of growth. I am awaiting a signal on the lower TF to connect to the move that can test the Senku Span A line. The sentiment remains neutral and allows you to search for a long position.
