“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.
We watch very small changes from yesterday on EUR/USD. It remains in a downward correction just above the support. On its defense will depend our further interpretation of the last impulse. Overcoming this level should lead to the test of the last low, thus typing the impulse into wave five of the third wave. Level defense should allow another attempt to attack the top.
On the Ichimoku chart, we can see that the pair defended support in the Kijun line. Currently price is testing from the top another line which is Tenkan. Both of these lines are directed upwards, which may indicate a continuation of increases. It is also a good time to look for entry a long.
The sentiment remains neutral for several days, the pair is on support, the lines are arranged in the right way. It remains to wait for a signal.
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GBP/USD remains in correction of the last impulse, which is either the beginning of the next wave or the C wave in the irregular correction. In the first case, after correction, we will see an attempt to overcome the line led over the highs. If the pair manages to overcome it, an attack on the top will be very likely. In the second case, the drop will develop to 3C and test the accelerated uptrend line. Its defeat will lead to a key support test.
On the Ichimoku chart we have a very similar situation to that on the EUR/USD pair. It is true that here, the pair failed to defend the Kijun line, but very quickly returned above her. Currently is tested the Tenkan line. Both lines are arranged bullish. On the daily chart, we have buy signal in the form of three lines. However, I will look for the signal on the H4 chart, and there the pair stays in the cloud and tests the Kijun line. Breaking out from the cloud will allow you to open the position.
Since yesterday in the sentiment chart, we see an increase in long positions and a fixed level of short and such a system allows you to look for a long position.
USD/JPY – we continue to watch increases after rejection of the support zone. The increases can reach 107.300, where the nearest resistance zone is located. After we reject it, we should see continuation of the decreases and the attempt to overcome the last low. A little bit the attitude of the players is changing, what we can see on the sentiment chart. The number of short positions is systematically growing. It is true that we still have a very big advantage in long positions, but maybe the sentiment will slowly change.
